In the Event That the Audit Client Has Multiple Locations

question 33

Multiple Choice

In the event that the audit client has multiple locations and the auditor is not able to be present at all of them on the date of the physical inventory count, the auditor can rely

• A) totally on the internal auditor to observe the physical inventory count.
• B) on the internal auditor subject to the requirements of CAS 610.
• C) totally on the records prepared as part of the client periodic inventory system.
• D) none of the above

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Definitions:

Households

An economic unit of one or more persons living together who make joint decisions on consumption and savings.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in the Gross Domestic Product (GDP).

Production Possibilities Frontier

A graph that illustrates all the highest production options for two or more products, based on a specific set of resources, such as labor and materials.

Trade-Offs

The concept of giving up one thing in return for gaining another, often used in the context of making decisions that involve a compromise.