Frontenac Construction,your Audit Client,is a Construction Company

question 46

Multiple Choice

Frontenac Construction,your audit client,is a construction company.In the initial planning phase of the audit,you identified that it has many contracts with severe non-performance clauses if any of the current constructions are not completed on the dates set in the contracts over the next three years.As the auditor,you would set the inherent risk for sales and penalties as

• A)high.
• B)moderate.
• C)low.
• D)unknown: this cannot be determined until more procedures are performed.

---

Definitions:

Expertise Level

The degree of skill or knowledge that an individual has in a specific field or activity.

Business Acumen

The ability to understand and deal with business situations in a manner that is likely to lead to a good outcome.

Foundational Competency

Foundational competency refers to the essential skills or knowledge that serves as the base for further learning or professional development.

ATD Competency Model

A framework developed by the Association for Talent Development to outline the skills and knowledge needed by professionals in the field of training and development.