The Extent of Procedures Is Affected Mostly by Which of the Following

question 39

Multiple Choice

The extent of procedures is affected mostly by which of the following factors?

• A)the sheer volume of procedures to be applied by the auditor.
• B)the time of year in which the client takes a physical inventory in the warehouse.
• C)the auditor's judgment that misstatements are probable in certain balances.
• D)the availability of the client's staff at or near the balance sheet date.

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Definitions:

Personal Expenses

Out-of-pocket expenses related to the individual needs of a person rather than business expenses.

Operations

Activities and tasks involved in the day-to-day running of a business or system, focusing on producing and delivering products or services.

Asset Decrease

A reduction in the value or quantity of an asset, which can affect a company's balance sheet and overall financial health.

Asset Increase

An increase in the economic value or utility that an asset brings to a company.