With respect to financing activities, _______.

Question

Quizplus · Accepted Answer

Financing activities can vary significantly from industry to industry based on factors such as capital needs, access to financing, and market conditions. Therefore, it is important for the auditor to understand the industry in order to properly assess financing activity transactions. Option B and C are incorrect as they suggest little or no variation between industries, which is not accurate. Option D is also incorrect as the auditor is not required to confirm all financing activity transactions with the firm's stockholders, but instead should perform appropriate audit procedures to obtain sufficient evidence about the transactions.

With Respect to Financing Activities, _______