MBM Trading Company is a multi-disciplined Engineering, Contracting and Construction company based in Sohar. When the auditor visited the company for audit, the management unnecessarily books the most expensive hotel for his stay at Sohar. The cost of such action needs to be addressed because O a It does not form opposing interest. O b. It does not reduce the profits of the company. O cit does not provide added value to shareholders. Od It does not increase the operating cost of the company.

MBM Trading Company is a multi-disciplined Engineering, Contracting and Construction company based in Sohar. When the auditor visited the company for audit, the management unnecessarily books the most expensive hotel for his stay at Sohar. The cost of such action needs to be addressed because O a It does not form opposing interest. O b. It does not reduce the profits of the company. O cit does not provide added value to shareholders. Od It does not increase the operating cost of the company.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 7RQSC

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Similar questions

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You are a Senior Manager in Federer & Co, a firm of Chartered Certified Accountants offering audit and assurance services mainly to large, privately owned companies. The firm has suffered from increased competition, due to two new firms of accountants setting up in the same town. Several audit clients have moved to the new firms, leading to loss of revenue, and an over staffed audit department. Ann Agassi, one of the partners of Federer & Co, has asked you to consider how the firm could react to this situation. Several possibilities have been raised for your consideration: 1. Nadal Co, a manufacturer of electronic equipment, is one of Federer & Co.’s audit clients. You are aware that the company has recently designed a new product, which market research indicates is likely to be very successful. The development of the product has been a huge drain on cash resources. The Managing Director of Nadal Co has written to the audit engagement partner to see if Federer & Co…
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