If the Auditor Concludes That Physical Controls Over Inventory Are

question 117

Multiple Choice

If the auditor concludes that physical controls over inventory are so inadequate that the inventory will be difficult to count, the auditor should ordinarily

• A) withdraw from the engagement.
• B) issue a qualified audit report.
• C) conduct expanded observation tests of physical inventory.
• D) hire a specialist to assist the auditor.

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Definitions:

Apnea

A temporary cessation of breathing, especially during sleep, which can result in decreased oxygen levels in the blood.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Cortical Changes

Modifications or adaptations in the brain's cortex due to learning, experience, injury, or other stimuli.

Shift Work

Employment scheduling practice that divides the workday into shifts, enabling operations to continue beyond the standard working hours.