Which of the Following Is nota Part of the Auditors

question 64

Multiple Choice

Which of the following is nota part of the auditors' responsibility regarding a client's count of its inventory?

• A)Evaluate condition of inventory.
• B)Determine which counts they will make and which counts the client will make.
• C)Observe compliance with management's instructions for the count.
• D)Make some test counts.

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Definitions:

Limited Liability

Limited Liability refers to the legal structure of a corporation where shareholders' financial responsibility is limited to the amount they invested in the company, protecting personal assets from company debts and liabilities.

Ownership Transfer

The legal process of transferring the title of an asset from one entity or individual to another.

Corporations

Entities recognized by law as separate from their owners, with the ability to own assets, incur liabilities, and engage in business activities.

Debt Securities

Financial instruments representing money borrowed by the issuer that must be repaid, such as bonds, notes, and bills.