Your Client Plans to Count Inventory at Several Locations on the Same

question 73

Multiple Choice

Your client plans to count inventory at several locations on the same day. No location is material in amount, but the total of inventory is quite material. How is an auditor likely to plan to observe?

• A)Observe all counts at all locations by using the required number of auditors.
• B)Insist the inventory be counted on separate days so the auditor can be present at all locations.
• C)Work with the client to determine which locations to observe.
• D)Observe a sample of locations on a surprise basis.

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Definitions:

Free Labor Ideology

The belief that labor should be conducted freely and characterized by a fair exchange of work for wages, underpinning much of the anti-slavery movement in the United States before the Civil War.

Slave Labor

The coerced labor of enslaved individuals, without pay or personal freedom, used historically in various societies and economies worldwide.

Upper South

A region in the United States characterized by states that were historically part of the Confederacy but had mixed loyalties during the Civil War.

Lower South

Refers to the southernmost states of the U.S., including Alabama, Florida, Georgia, Louisiana, Mississippi, South Carolina, and Texas, known for their deep historical association with slavery and the Confederacy.