When Considering Clients Like Boeing, Inventory Will Most Likely Be

question 63

Multiple Choice

When considering clients like Boeing, inventory will most likely be the largest current asset and prepaid expenses will be one of the smallest.As a result, the auditors should plan to _______.

• A)devote more audit time to the inventory account than the prepaid expenses account
• B)devote more audit time to prepaid expenses to the inventory account
• C)use more complex audit tests for inventory and more simple audit tests for prepaid expenses
• D)observe more material misstatements in prepaid expenses due to timing differences as compared to the inventory account

---

Definitions:

Variance

A measure of the dispersion or spread of a set of data points around their mean value.

Numerical Value

A quantitative measurement or amount usually expressed as a number or a set of numbers.

Population Size

The total number of members in a defined population.

Symbols

Characters or glyphs that are used to represent objects, functions, or processes.