Question

What is the definition of a tick mark in auditing, and what is its primary purpose?

a) A tick mark is a graphical representation used for client signatures, and its purpose is to indicate approval of financial statements.
b) A tick mark is a symbol or notation made on audit documentation, representing a specific audit procedure or testing. Its purpose is to provide a concise reference to the work performed.
c) Tick marks are used to denote errors in financial statements, and their purpose is to highlight discrepancies for further investigation.
d) A tick mark is a legal requirement in audit documentation, serving as a verification of compliance with auditing standards.

Answer 1

Correct answer is B) .A tick mark in auditing is a symbol or notation that represents a specific audit procedure or testing. It helps auditors keep track of their work and provides evidence of their testing procedures.

Step-by-step explanation:

A tick mark in auditing is a symbol or notation made on audit documentation to represent a specific audit procedure or testing. It serves as a concise reference to the work performed during the audit.

For example, auditors might use tick marks to indicate that they have reviewed supporting documents or conducted mathematical calculations.

Tick marks are important in auditing because they help auditors keep track of the work they have done and provide evidence of their testing procedures. The definition of a tick mark in auditing is option B: A tick mark is a symbol or notation made on audit documentation, representing a specific audit procedure or testing. Its primary purpose is to provide a concise reference to the work performed.