Which of the Following Procedures Is Not a Fraud-Related Audit

question 66

Multiple Choice

Which of the following procedures is not a fraud-related audit procedure used to respond to identified fraud risk factors?

• A)Physically inspect tangible assets,including major additions,and agree serial numbers with invoices or other supporting documents.
• B)Use the work of a specialist for asset valuations,including impairments.
• C)Confirm the terms of significant additions of property or intangibles with other parties involved in the transaction.
• D)All of the above are fraud-related audit procedures.

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Definitions:

Re-Order Point

The reorder point is the level of inventory that triggers an action to replenish that particular inventory stock, ensuring a seamless operation without stockouts.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price level at a given time.

Standard Deviation

A measure that indicates the amount of variation or dispersion of a set of values from the mean.

Service Level

A measure of the quality and timeliness of service provided to customers, often framed as a percentage of customer demands met on time.