Which of the Following Questions Would Be Inappropriate for an Auditor

question 34

Multiple Choice

Which of the following questions would be inappropriate for an auditor to ask a client when exhibiting an appropriate level of professional skepticism while completing an audit procedure related to the internal control system?

• A)What can go wrong in this process?
• B)Which of your employees is a fraudster?
• C)What else is important to know about this process?
• D)What happens when a key employee goes on vacation?

---

Definitions:

Operating Budget

A detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period, usually a fiscal year.

Cash Budget

A detailed plan that estimates cash inflows and outflows over a certain period, helping businesses manage their cash flow and liquidity.

Sales Budget

A detailed plan outlining the expected revenues from the sale of products or services over a specific period, serving as a roadmap for the company's sales strategy and performance expectations.

Finished Goods Inventory

The stock of completed products that are ready to be sold by a manufacturing company.