During Discussion and Inquiry with Management,the Auditor Determined That the Company

question 18

Multiple Choice

During discussion and inquiry with management,the auditor determined that the company has started a new line of business that requires a substantial investment in manufacturing equipment.The company has also implemented wireless scanning for its warehouse and inventory.Which of the following techniques will the auditor likely use to corroborate these statements?

• A)further inquiry of the accounting personnel
• B)inspection of recent sales invoices for types of sales
• C)use of analytical procedures,comparing last year to this year
• D)observation during the plant tour

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