At the Conclusion of an Audit, an Auditor Is Reviewing

question 859

Multiple Choice

At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take?

• A) Consult with the audit committee and issue a disclaimer of opinion.
• B) Consult with the audit committee and issue a qualified opinion.
• C) Obtain additional evidence regarding the valuation of inventory.
• D) Obtain a statement from management supporting their inventory valuation.

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Definitions:

Primary Group

Small social groups characterized by close, personal, and enduring relationships, such as those among family, close friends, and peers.

Social Ties

The connections and relationships between individuals that form the fabric of society, providing support, community, and social interaction.

Different Activities

A range of tasks or actions that vary in nature, purpose, or context.

Structures of Authority

The organized framework or system by which power and control are exercised in a society, organization, or group.