Which situation would most likely require special audit planning by the auditors? Some items of factory...
Which situation would most likely require special audit planning by the auditors?
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Some items of factory and office equipment do not bear identification numbers. |
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The investment portfolio has several complex financial instruments, such as derivatives. |
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Depreciation methods used on the client's tax return differ from those used on the books. |
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Assets costing less than $500 are expensed even though the expected life exceeds one year. |
Homework Answers
Option '2' is correct.
The investment portfolio has several complex financial instruments, such as derivatives In this situation, the auditor would most likely require special audit planning by the auditors.
Special audit planning looks only a specific area in detail. It is generally authorized by an entity or even intrenally. Examples of special audits are Compensation audits.
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