If the Auditor Is Appointed After the Year-End of the Client,the

question 6

Multiple Choice

If the auditor is appointed after the year-end of the client,the auditor

• A)should qualify the audit opinion for the inventory balance and cost of sales.
• B)could attend a current perpetual inventory count and roll backward with the records.
• C)should do an inventory count as soon as he is appointed.
• D)will inquire with management about the inventory count performed at year-end.

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Definitions:

Effective

Achieving desired outcomes or goals with efficiency, often denoting success in accomplishing tasks or objectives.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Types Of Decisions

Decisions can be categorized based on complexity, urgency, and impact, such as strategic, tactical, operational, and routine decisions.

Equity Theory

A concept in social psychology that posits individuals are motivated by fairness, and if they identify inequalities in the input-outcome ratios compared to others, it will result in work-related tensions.