Identify the Three Factors an Auditor Should Evaluate Before Relying

question 83

Essay

Identify the three factors an auditor should evaluate before relying on the work of an outside specialist.

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Definitions:

Material Resources

Physical items such as equipment, buildings, and raw materials that are used in the operation of a business or project.

Trademarks

Legal protections for logos, names, and other unique marks that distinguish goods or services and protect them from being used without permission.

Raw Materials

The basic, unprocessed resources required for manufacturing goods or providing services, such as metals, wood, oil, or agricultural products.

Outsourcing

Is the process of hiring outside firms to handle basic HRM functions, presumably more efficiently than the organization could.