When Auditing a Public Company, a CPA Must Follow the Auditing

question 3

True/False

When auditing a public company, a CPA must follow the auditing standards and Code of Professional Conduct of the PCAOB.

---

Definitions:

Freight-In

Costs associated with the shipping of raw materials or goods into a production facility or warehouse, typically included in the inventory cost.

Inventory Decreased

A situation where the quantity of goods available for sale by a business is reduced, typically because of sales or use.

Purchases

The total amount of goods and materials acquired by a business for resale or production within an accounting period.

Cost of Goods Available

The total cost of a company's inventory that is available for sale during a certain period.