During the Current Financial Year, the Client Company Began Dealing

question 75

Multiple Choice

During the current financial year, the client company began dealing with certain distributors on a consignment basis (goods were delivered to the distributor but not deemed sold until the distributor had on-sold them) . Which of the
Following audit procedures is least likely to bring this new fact to the auditor's attention?

• A) Test of cash receipts transactions.
• B) Tracing of shipping documents to the sales journal.
• C) Observation of physical inventory at the client company's premises.
• D) Confirmation of accounts receivable.

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Definitions:

Organic Organizations

A flexible and adaptive organizational structure that allows for quick decision-making processes and decentralized authority.

Bureaucratic Features

Characteristics of a bureaucratic organization include a hierarchical structure, formal rules and regulations, specialization, and an impersonal relationship between its members.

Worker Empowerment

The practice of giving employees the authority, resources, and freedom to make decisions and contribute to the company's success in meaningful ways.

Organic Design

An organization structure that is decentralized, with fewer rules and procedures, open divisions of labour, wide spans of control, and more personal coordination.