Which of the Following Is True About the Auditors' Observation

question 51

Multiple Choice

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

• A) The auditors should plan the physical inventory.
• B) The auditors should segregate damaged and obsolete goods.
• C) The auditors should evaluate the adequacy of the client's counting procedures.
• D) The auditors should supervise the client's personnel.

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Definitions:

Opportunity Costs

The disclaim of potential advantage from other options when a particular choice is favored.

Exercising Regularly

The routine practice of engaging in physical activity to maintain or improve health and fitness.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors using the same amount of resources.

Comparative Advantage

The ability of a country or firm to produce a good or service at a lower opportunity cost than its competitors.