When an Auditor Observes That Personnel Who Are Responsible for Physically

question 24

Multiple Choice

When an auditor observes that personnel who are responsible for physically counting inventory are not following the inventory instructions, the auditor should

• A) contact a client's supervisor to correct the problem.
• B) modify the client's physical inventory instructions.
• C) not discuss the problem with client's supervisor in order to maintain independence.
• D) assign audit staff to the inventory count.

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Definitions:

Practical Intelligence

A type of intelligence that involves the ability to solve everyday problems through skilled reasoning that one may not have been formally taught.

Analytical Intelligence

Analytical Intelligence is a facet of intelligence that involves the ability to analyze, evaluate, judge, compare, and contrast.

Aptitude Test

A standardized test designed to measure an individual's potential to succeed in a particular activity or field of study.

Eugenics

A controversial science aimed at improving the genetic composition of the human race through selective breeding.