An account is if there is a reasonable possibility that it could contain a misstatement that has a material effect on the financial statements.

The significance of accounts should be considered regard to internal control

After determining significance, the financial statement come into determination

Routine transactions are for activities.

Accounting involve management's judgment or assumptions.

An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control activities leave evidence, the auditor most likely will test the activities by

Multiple Choice

confirmation and observation.

inquiry and analytical procedures.

observation and inquiry.

analytical procedures and confirmation.