Which of the Following Situations Would Most Likely Require Special

question 66

Multiple Choice

Which of the following situations would most likely require special audit planning?

• A)Some items of factory and office equipment do not bear identification numbers.
• B)Depreciation methods used on the client's tax return differ from those used on the books.
• C)Assets costing less than $500 are expensed even though the expected life exceeds one year.
• D)Inventory is comprised of precious stones.

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Definitions:

Ratification

The act of officially approving or confirming an agreement or action, making it valid and binding.

Implied Ratification

The acceptance or approval of a previously unauthorized act by behaving in a manner that acknowledges the act as authorized.

Express Ratification

Formal approval or confirmation of an act or agreement, usually explicitly and often in writing, making it officially valid.

Misrepresentation

The act of giving a false or misleading statement about a material fact, often leading to a breach of contract.