With Respect to the Auditor's Planning of a Year-End Examination

question 73

Multiple Choice

With respect to the auditor's planning of a year-end examination, which one of the following statements is ALWAYS true?

• A) An engagement should not be accepted after the financial year ends.
• B) An inventory count must be observed at the balance sheet date.
• C) The client's audit committee should not be told of the specific audit procedures that will be performed.
• D) It is an acceptable practice to carry out substantial parts of the examination at interim dates.

---

Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across U.S. states.

Inventory

The complete list of items such as goods, materials, and merchandise that a business holds with the intent to sell.

CPA

Certified Public Accountant, a professional designation given to qualified accountants who have passed a licensing examination in their jurisdiction.

Security Interest

A legal claim on assets which are given to secure a loan and ensure the repayment of debt.