Question
When considering clients like Boeing, inventory will most likely be the largest current asset and prepaid expenses will be one of the smallest. As a
When considering clients like Boeing, inventory will most likely be the largest current asset and prepaid expenses will be one of the smallest. As a result, the auditors should plan to _______.
A. devote more audit time to the inventory account than the prepaid expenses account | ||
B. devote more audit time to prepaid expenses to the inventory account | ||
C. use more complex audit tests for inventory and more simple audit tests for prepaid expenses | ||
D. observe more material misstatements in prepaid expenses due to timing differences as compared to the inventory account |
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