Multiple Choice
During the audit of prepaid insurance, the auditor should keep in mind that the amount in insurance expense is based on:
A) the payment of premiums during the year.
B) the ending balance in prepaid insurance.
C) the beginning balance in prepaid insurance.
D) all three of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q39: Which of the following is not an
Q40: Expense accounts analysis is closely related to
Q41: For retail and wholesale businesses, the most
Q42: Auditors should be aware that the life
Q43: Inherent risk is typically _ for balance-
Q45: A major issue in verifying the ending
Q46: In rare cases, the auditor may believe
Q47: Ordinarily, it is unnecessary to test the
Q48: Match each of the descriptions with the
Q49: Which type of audit procedure (tests of