Which of the Following Situations Would Most Likely Require Special

question 8

Multiple Choice

Which of the following situations would most likely require special audit planning by the auditors?

• A) Some items of factory and office equipment do not bear identification numbers.
• B) Depreciation methods used on the client's tax return differ from those used on the books.
• C) Assets costing less than $500 are expensed even though the expected life exceeds one year.
• D) Inventory is comprised of precious stones.

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Definitions:

Recall

The cognitive process of retrieving information from memory without the aid of cues, often tested in memory experiments.

Wish Fulfillment

A concept in psychoanalytic theory where dreams or fantasies allow the unconscious fulfillment of desires that cannot be satisfied in real life.

Secondary Process

In psychoanalytic theory, the more conscious, rational part of the psyche that is involved in decision making, problem-solving, and controlling the instinctual urges of the id.

Abreaction

The expression and consequent release of previously repressed emotion, often brought about through therapy or psychological treatment.