You Are Auditing Megabuild Plc a Company Which Builds Large

question 20

Essay

You are auditing Megabuild plc a company which builds large projects mostly overseas. At present it is building a dam in the Philippines, a motorway in South Africa and a holiday village in France.
The audit team has been asked to devise audit procedures for the verification of work in progress balances as part of inventories. From the test below select whether you would include them as valid tests or exclude them as invalid.

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Definitions:

Stereotyping

The practice of assigning oversimplified and generalized characteristics or beliefs to an entire group of people, disregarding individual differences.

Categories

Mental groupings of people, objects, events, or ideas that share common characteristics, allowing the brain to organize information efficiently.

Attitudes

Psychological tendencies expressed by evaluating an entity with some degree of favor or disfavor, influenced by experiences, beliefs, and behaviors.

Feelings

Emotional states or reactions that are subjective and experienced internally, influenced by personal perceptions, thoughts, and experiences.