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:

Self-Sufficiency

The condition of being able to satisfy all of one's needs without external assistance.

NAFTA

The North American Free Trade Agreement, a treaty entered into by the United States, Canada, and Mexico; effective in 1994 to eliminate most tariffs on trade between these nations.

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence in global politics, economy, and culture.

Canada

A country in North America known for its vast landscapes, multicultural communities, and as the second-largest country by area in the world.