The auditor should plan the audit of the inventory business process with the following presumption:
A) there is a risk of material misstatement due to fraud relating to inventory transactions.
B) professional skepticism is necessary to find misstatements.
C) planning the audit requires a questioning mind.
D) the general environment or tone in the company may allow management to rationalize committing fraud.
Correct Answer:
Verified
Q87: How does the auditor gather evidence during
Q88: At the end of the audit,the auditor
Q89: An inventory balance is immaterial when
A)knowing the
Q90: If the auditor selects the sample of
Q91: How does the auditor gather evidence during
Q93: Management often uses internal controls in the
Q94: The auditor uses substantive tests of balances
Q95: If the auditor reviews the lower of
Q96: The applicable financial reporting framework allows the
Q97: If the auditor selects the sample of
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