1. Why is the audit of financial statements a complex activity to perform? What are the difficulties that auditors may face in an inventory audit process?

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2. An auditor is in the offices of the client's company and realizes that purchases of goods produced by the company, made by its employees, have been authorized by production managers and processed outside of the company's accounting system. the company. The income resulting from these sales is used for expenses related to the company's end-of-year festivities. Describe what course of actions the auditor would take to handle this scenario and why. Where to look for guidance or help to face this situation?

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Answer rating: 100% (QA)

1 The audit of financial statements is a complex activity due to several factors Complexity of Financial Reporting Standards Financial statements are prepared in accordance with complex accounting sta... View the full answer