If the Auditor Is Appointed After the Year-End of the Client,the

question 6

Multiple Choice

If the auditor is appointed after the year-end of the client,the auditor

• A)should qualify the audit opinion for the inventory balance and cost of sales.
• B)could attend a current perpetual inventory count and roll backward with the records.
• C)should do an inventory count as soon as he is appointed.
• D)will inquire with management about the inventory count performed at year-end.

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Definitions:

Construct Validity

The extent to which a test measures what it claims to be measuring, ensuring the accuracy of the theoretical concept it intends to reflect.

Internal Validity

The extent to which the results of a study are due to the manipulation of the independent variable and not other factors.

Causal Relationship

indicates a situation where one variable directly affects another variable, implying causation rather than just correlation.

Statistical Accuracy

The degree to which statistical estimates reflect the true value of the parameter being measured.