Auditing Standards Require That Auditors Satisfy Themselves About the Effectiveness

question 113

Essay

Auditing standards require that auditors satisfy themselves about the effectiveness of the client's method's of counting inventory and the reliance they can place on the client's representations about the quantities and physical condition of the inventories. To meet this requirement auditors must perform 4 activities. List below.

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Definitions:

Company Policy

Official guidelines or rules established by a business to outline the procedures and acceptable behavior within the organization.

Terms and Conditions

The set of rules and guidelines that are associated with a service or product, which govern the use thereof.

Indirect-Order Message

A communication method where the main point or request is placed towards the end, after the background or rationale.

Negative News

Communication that conveys unfavorable, disappointing, or undesirable information to the recipient.