Cimco Forest Is a Client of Your PA Firm That

question 73

Multiple Choice

Cimco Forest is a client of your PA firm that has requested that the audit of its financial statements be completed 25 days after its year end.Given the time constraint,the auditor

• A)should not accept Cimco as a client.
• B)should increase the size of the audit team.
• C)can perform audit procedures at an interim date and roll forward the interim balances to year end.
• D)should change the audit program to include more tests of controls and fewer tests of details,as they are more time consuming.

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Definitions:

Total Revenue

The total receipts from sales of a given quantity of goods or services.

Sold Units

The number of individual items or products sold by a company within a specified time period.

Price Discrimination

This refers to the practice of selling nearly the same items or services at varying prices in distinct markets by a singular provider.

Concession Stands

Retail outlets located at entertainment venues, sporting events, or fairs, where snacks, drinks, and other items are sold.