BDK Accounting Is Auditing a New Client, a La Carte

question 61

Essay

BDK Accounting is auditing a new client, A La Carte Catering. BDK could save audit time by using work from A La Carte's internal audit staff. The staff consists of three accountants with public accounting experience and certification. A La Carte requires every member of its accounting department to spend two out of every five years on the internal audit staff. Then, the employee is rotated back into the accounting department for a couple of years. What factors should BDK consider when determining whether or not it can use work of the internal audit staff? In this case, what should BDK decide?

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Definitions:

Promoting

The act of advertising or pushing forward an idea, product, or service to increase awareness and generate interest among potential customers.

Positioning Stage

The phase in marketing where a brand defines and communicates its unique value proposition and how it differs from competitors to target consumers.

Commoditization

The process where products become indistinguishable from each other in the eyes of the consumer, leading to competition primarily on price.

Protectionism

Protectionism is an economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations.