A clear understanding of the steps in the accounting cycle is likely to be useful in:
A)Financial audits.
B)Investigative audits.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

Understanding the accounting cycle can help in financial audits by providing a framework for reviewing financial transactions and ensuring that they are recorded accurately. It can also be useful in investigative audits by helping the auditor trace the flow of transactions through the accounting system and identify any irregularities or fraudulent activity.

A Clear Understanding of the Steps in the Accounting Cycle