Which of the Following Is True About the Auditors' Observation

question 41

Multiple Choice

Which of the following is true about the auditors' observation of the client's physical inventory?

• A)The count must be made at year-end.
• B)The auditors should supervise the client's personnel.
• C)The auditors' observation addresses the existence assertion.
• D)The auditors should justify any omission of the observation in the audit report.

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Definitions:

Marginal Benefit

The additional benefit resulting from a small increase in an activity or the consumption of a good or service.

Total Benefit

The complete value or advantage gained from consuming a good or service, encompassing both the direct and indirect benefits.

Additional Unit

Refers to the next unit of production or consumption beyond the current level.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an extra unit of a good or service.