Matthew, an Auditor, Is Going to Start a Project Audit

question 6

Multiple Choice

Matthew, an auditor, is going to start a project audit. He has already acquired information about the project from the accounting department. Which of the following steps should he take to expedite gathering data about the project?

• A) He should accept unconfirmed and unverified information from discreet sources.
• B) He should streamline the project development process.
• C) He should develop forms and procedures for data collection.
• D) He should ensure the legality of the audit.
• E) He should compile the currently available data separately.

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Definitions:

Corporate Vertical Marketing System

A structured marketing distribution channel where a single company owns multiple levels of its supply chain, such as manufacturing, wholesaling, and retailing.

Contractual Vertical

A system where independent firms at different levels of the production and distribution process work together through contractual relationships.

Supply Sources

Providers or vendors from which companies obtain their raw materials, products, or services.

Forward Integration

A business strategy where a company extends its operations by moving forward in the supply chain, acquiring or controlling the distribution centers or retailers.