Which of the Following Is True About the Auditors' Observation

question 41

Multiple Choice

Which of the following is true about the auditors' observation of the client's physical inventory?

• A)The count must be made at year-end.
• B)The auditors should supervise the client's personnel.
• C)The auditors' observation addresses the existence assertion.
• D)The auditors should justify any omission of the observation in the audit report.

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Definitions:

Base Fine

A fixed amount of money established as the starting point for fines related to violations or offenses, which can be adjusted based on specific circumstances.

Mala Prohibita

Acts that are crimes because legislation defines them as such, despite not being inherently evil or immoral.

Statutory Law

Law established by the enactment of legislation by a governing body, as opposed to case law or regulations promulgated by governmental agencies.

Common Law

A legal system based on judicial decisions and precedents, rather than codified laws.