The Auditors Will Typically not Initiate Discussion with the Audit

question 21

Multiple Choice

The auditors will typically not initiate discussion with the audit committee regarding the:

• A)Extent to which the work of internal auditors will influence the scope of the examination.
• B)Extent to which change in the company's organization will influence the scope of the examination.
• C)Details of potential problems which the auditors believe might cause a qualified opinion.
• D)Details of the procedures which the auditors intend to apply.

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Definitions:

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Perpetual Inventory System

An inventory management method where updates are made continually to record each sale or purchase of inventory.

Inventory Ledger

A detailed record maintaining the quantity and value of a company's inventory over time.