What Action Should an Auditor Take If an Auditee Responds

question 74

Multiple Choice

What action should an auditor take if an auditee responds to a procedural noncompliance by stating that the procedure conflicts with a written company policy?

• A) Close out the corrective action request.
• B) Notify the auditee to comply with the procedure.
• C) Void the noncompliance.
• D) Request that the auditee resolve the conflict.

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Definitions:

Book Value

The net value of an asset according to its balance sheet account balance, calculated as the original cost minus accumulated depreciation.

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.

Fair Value

The estimated market value of an asset or liability, reflecting the price it would fetch in an orderly transaction between market participants at the measurement date.

Book Value

The net value of a company's assets, minus its liabilities, as it appears on the balance sheet.