For Audits of Very Large Organizations, the Number of Notable

question 29

Multiple Choice

For audits of very large organizations, the number of notable items _______.

• A)could number in the hundreds
• B)could number in the thousands
• C)could number in the hundreds or thousands
• D)could number in the millions

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Definitions:

Financial Reporting

Refers to the process of producing statements that disclose an organization's financial status to management, investors, and the government.

Merchandise Inventory

Goods that a company buys to resell at a profit. It is a current asset on the balance sheet.

Transportation-In

Costs associated with bringing inventory items to a company's location, which are added to the cost of inventory.

Invoice Price

The invoice price is the original price that a manufacturer suggests for the sale of a product or service before any discounts or allowances are applied.