It Is Important for Auditors to Be On-Location on the Last

question 4

Multiple Choice

It is important for auditors to be on-location on the last day of the client's fiscal year when the client

• A) operates a restaurant that does a considerable amount of business on New Year's Eve.
• B) has significant inventory activities such that the receipts and shipments of inventories at year-end should be observed.
• C) relies upon electronic verification to indicate the timing of transactions.
• D) refuses to pay overtime rates for the audit team during its busy season.

---

Definitions:

Potential Energy

The energy possessed by an object due to its position or configuration, capable of being transformed into kinetic energy.

Light Bulb

An electric device that produces light from electricity, typically consisting of a filament that glows when heated.

Low-Throughput Economy

An economic system focused on minimizing resource use and waste production.

Barrel of Oil

A unit of measure for crude oil and other petroleum products, equivalent to 42 US gallons.