Final answer:
The amount of audit attention devoted to various locations during the auditing of a company with multiple locations depends on the factors that determine location.
Step-by-step explanation:
When auditing a company with multiple locations, the amount of audit attention devoted to various locations depends upon the factors that determine location.
These factors include the costs of labor and financial capital, proximity to suppliers and customers, quality of transportation and communication networks, level of taxes, and competence and honesty of the local government. The cost of environmental regulations is also a factor, but it typically accounts for no more than 1-2% of the overall costs.
For example, if a location has high labor costs and inefficient transportation networks, it may require more audit attention to ensure efficiency and cost-effectiveness.