Most Audits of a Company Are Done Annually by the Same

question 80

Multiple Choice

Most audits of a company are done annually by the same audit firm. Except for initial engagements, the auditor begins the audit with a great deal of information about the client's internal controls developed in prior years. Because systems and controls usually don't change frequently:

• A) it eases the burden on the auditor's requirement to do a complete study of the controls this year.
• B) it is sufficient for the auditor just to inquire of the client whether the controls have been changed since last year.
• C) the auditor can skip the evaluation of this area on repeat engagements.
• D) this information can be updated and carried forward to the current year's audit.

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Definitions:

Work Throughputs

The amount of work or tasks completed in a given period, often used as a measure of productivity or efficiency.

Work Inputs

The time, effort, and resources employed by workers to produce goods or provide services.

Immediate Corrective Action

Rapid responses taken to rectify problems or irregularities as soon as they are identified.

Shift Supervisors

Individuals responsible for overseeing the operations and workers within a specific shift, ensuring productivity and compliance with standards.