Question

In the continuing audit of a manufacturing company of medium size, which of the following areas would you expect to require the least amount of audit time?

a) Owners' equity.
b) Revenue.
c) Assets.
d) Liabilities.

Answer 1

In a manufacturing company of medium size, owners' equity would require the least amount of audit time compared to revenue, assets, and liabilities.

Step-by-step explanation:

Out of the given options, the area that would require the least amount of audit time in a manufacturing company of medium size would likely be owners' equity.

Owners' equity refers to the value of the business that belongs to the owners, also known as shareholders or stockholders. In a manufacturing company, the focus of the audit is often on ensuring the accuracy of financial statements, particularly in areas such as revenue, assets, and liabilities. Although owners' equity is an important area to audit, it typically involves fewer complexities and transactions compared to revenue, assets, and liabilities.