When an Outside Specialist Has Assumed Full Responsibility for Taking

question 52

Multiple Choice

When an outside specialist has assumed full responsibility for taking the client's physical inventory, reliance on the specialist's report is acceptable if:

• A) the auditor's report contains a reference to the assumption of full responsibility.
• B) the auditor is satisfied through application of appropriate procedures as to the reputation and competence of the specialist.
• C) the auditor conducted the same audit tests and procedures as would have been applicable if the client's employees took the physical inventory.
• D) circumstances made it impracticable or impossible for the auditor either to do the work personally or observe the work done by the inventory firm.

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Definitions:

Emotion Labour

The process of managing and often suppressing one's emotions to fulfill the emotional requirements of a job or role in society.

Alienation

A condition in social relationships reflected by a low degree of integration or common values and a high degree of distance or isolation between individuals, or between an individual and a group.

Infant Mortality

The rate at which infants under one year of age die, often measured per 1,000 live births, reflecting the health conditions and healthcare quality in a society.

Life Expectancy

The average period that a person or organism is expected to live, based on statistical averages of age, geographic region, and other factors.