The First Standard of Field Work, Which States That the Work

question 95

Multiple Choice

The first standard of field work, which states that the work is to be adequately planned and that assistants, if any, are to be properly supervised, recognizes that:

• A) early appointment of the auditor is advantageous to the auditor and the client.
• B) acceptance of an audit engagement after the close of the client's fiscal year is generally not permissible.
• C) appointment of the auditor subsequent to the physical count of inventories requires a disclaimer of opinion.
• D) performance of substantial parts of the examination is necessary at interim dates.

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Definitions:

Credit Sale

A type of transaction in which goods or services are provided to a customer with the understanding that payment will be made at a later date.

Collectibility

The likelihood that a receivable will be collected from a debtor, typically considered in revenue recognition and accounting for bad debts.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Money Market

A section of the financial market where short-term funds are borrowed and lent, involving instruments like treasury bills and commercial paper.