If a Specialist Is Used by Client Management to Value

question 65

Multiple Choice

If a specialist is used by client management to value the assets of the target company,the auditor will most likely evaluate all of the following characteristics of the expert,except for which of the following?

• A)fees and billings.
• B)credentials.
• C)methodologies.
• D)independence.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production costs.

Operational Costing

The method of calculating the expenses associated with the day-to-day running of a business, including costs of manufacturing and services.

Food Processors

Kitchen appliances used to facilitate repetitive tasks in the preparation of food, such as chopping or mixing.

Large Scale

Operations or activities conducted on a wide-ranging or extensive basis, often implying significant impact or size.