Simon Owns a Clothing Store,Simonello

question 15

Multiple Choice

Simon owns a clothing store,Simonello.Simonello recently purchased a material amount of fabric from Simonique Inc. ,a textile company also owned by Simon.With regards to this transaction,the auditors should

• A)request a confirmation from Simonique that the transaction took place.
• B)inspect the textile received in the warehouse to ensure that the amount sent equals the amount ordered.
• C)qualify the audit report,as this puts management's integrity into question.
• D)verify that the business relationship is disclosed in the financial statements.

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Definitions:

Exceptions

Provisions that exclude or modify the general applicability of a rule, contract, or statute.

Sue

To initiate legal proceedings against another party, typically to seek redress for a grievance or enforcement of a right.

Electronic Communications Privacy Act

The Electronic Communications Privacy Act is a U.S. federal law enacted in 1986 to extend government restrictions on wire taps from telephone calls to include transmissions of electronic data by computer.

Employee Privacy Rights

The rights of employees to have their personal information, activities, and communications remain private and secure from unwarranted scrutiny by employers.