Observing the Client's Stocktake Enables the Auditor to Establish That

question 27

Multiple Choice

Observing the client's stocktake enables the auditor to establish that:

• A)items belonging to the client are accurately counted and recorded.
• B)count tags,sheets or cards are properly controlled.
• C)the client's personnel are complying with the instructions for stocktakes.
• D)All of the above

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Definitions:

Operating Activities

Activities directly related to the operating aspect of a business, such as selling products, managing costs, and paying salaries.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Operating Activities

Business functions directly related to providing goods or services, such as sales, production, and day-to-day administration.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset’s consumption or wear and tear.