In the Audit of a Medium-Sized Manufacturing Concern, Which One

question 11

Multiple Choice

In the audit of a medium-sized manufacturing concern, which one of the following areas can be expected to require the least amount of audit time?

• A)Retained earnings.
• B)Revenue.
• C)Assets.
• D)Liabilities.

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Definitions:

Subcontracting

The practice of assigning or outsourcing part of the obligations and tasks of a contract to another party, often used to leverage specialized skills or cost advantages.

Inventory

The total amount of goods or materials held in stock by a business, available for sale or use in production.

Stockouts

Occurs when a product is not available in inventory for sale or use, leading to potential loss of sales and customer dissatisfaction.

Hybrid Strategies

Business tactics that combine elements of different traditional strategies, such as cost leadership and differentiation, to achieve competitive advantage.