The Auditor Has Evaluated the Effectiveness of the Client's Procedures

question 46

Multiple Choice

The auditor has evaluated the effectiveness of the client's procedures to count inventory,and has provided constructive suggestions for improvement.However,the client has not implemented the suggestions,so the auditor has concluded that the inventory instructions do not provide adequate controls.This means that the auditor

• A)must send a management letter informing management of the impact of these weaknesses.
• B)must spend more time ensuring that the physical count is accurate.
• C)should use attribute sampling to select a smaller sample for testing the physical inventory.
• D)should increase the level of price and compilation tests to ensure better quality inventory pricing data.

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Definitions:

Tolerating Ambiguity

The ability to remain comfortable and continue functioning effectively in situations that are unclear, uncertain, or not fully understood.

Mindfulness

The ability to think consciously about what you are doing and experiencing.

Eucharist

A Christian sacrament commemorating the Last Supper, in which bread and wine are consecrated and consumed.

Communication Codes

Systems or sets of symbols (such as languages, gestures, or dress codes) used to transmit messages among individuals or groups.