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:

Continuous Improvement

The ongoing effort to enhance products, services, or processes to increase efficiency and effectiveness.

ISO 14001:2015

An international standard that sets criteria for an effective environmental management system (EMS).

Environmental Laws

A body of laws and regulations designed to protect the environment from harm caused by human activities, including pollution and natural resource depletion.

Compliance

Adhering to laws, regulations, standards, and ethical practices applicable to business operations and activities.