Auditors Must Master a Variety of Techniques for Gathering Information

question 230

Multiple Choice

Auditors must master a variety of techniques for gathering information. All of the techniques, which involve both manual and electronic means, are described below EXCEPT:

• A) Planning and controlling.
• B) Reviewing management reports
• C) Direct observation - auditors can obtain valuable information and evidence by directly observing the customer's operations and work processes.
• D) Interviews - it is important to meet with personnel involved in the processes being audited to discuss key issues.

Calculate inventory valuation under dollar-value LIFO method.

Calculate the effect of inventory valuation methods on financial statements.

Understand the concept of realized holding gains and their calculation.

Learn how to apply the lower of cost or market rule to inventory valuation.

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Definitions:

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Rational Persuasion

The use of logical arguments and factual evidence to convince someone of a viewpoint.

Emergent Leader

An individual who naturally takes on a leadership role within a group, often recognized through their actions or influence rather than formal appointment.

Demonstrated Competence

Evidence of an individual's or organization's ability to perform effectively based on past actions and achievements.