If the Auditor Concludes That Physical Controls Over Inventory Are

question 117

Multiple Choice

If the auditor concludes that physical controls over inventory are so inadequate that the inventory will be difficult to count, the auditor should ordinarily

• A) withdraw from the engagement.
• B) issue a qualified audit report.
• C) conduct expanded observation tests of physical inventory.
• D) hire a specialist to assist the auditor.

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Definitions:

Nonexempt Positions

Positions that are not exempt from the Fair Labor Standards Act (FLSA) rules about overtime pay and minimum wage.

Position Analysis

A systematic process for collecting information on the important duties, responsibilities, and qualifications of a specific job to determine its place within the organizational structure.

Generating

The process of creating, producing, or bringing into existence something new.

Job Description

A formal document that outlines the responsibilities, duties, qualifications, and scope of a specific job within an organization.