The auditor will normally find evidence concerning the proper authorization of transactions in the financing cycle by:
A) direct confirmation by the investors.
B) inquiring of the audit committee.
C) inquiring of management.
D) reading the copies of the contracts.
E) reading the minutes of the board of directors meetings.

Question

Quizplus · Accepted Answer

The board of directors is responsible for authorizing significant transactions, and such authorizations are typically documented in the minutes of their meetings.

The Auditor Will Normally Find Evidence Concerning the Proper Authorization