Which of the Following Is Not a Standard Procedure That

question 33

Multiple Choice

Which of the following is not a standard procedure that the auditor normally should follow in the observation of inventory at year-end?

• A)Observe the client taking inventory.
• B)Make selected test counts and trace into client's inventory compilation.
• C)Look for slow-moving,obsolete or damaged inventory.
• D)Review disclosure of inventory valuation.
• E)All of the above are standard audit procedures in the observation of inventory.

---

Definitions:

Partnership's Assets

The resources owned by a partnership that are used in its business operations.

General Partners

Individuals or entities who manage the business and are personally liable for the partnership's debts.

Limited Partners

Investors in a partnership who are not involved in the daily operations of the business and whose liability is restricted to the amount of their investment.

Co-owners

Individuals or entities that hold ownership rights together in a property or asset, sharing the benefits as well as responsibilities.