Which of the Following Is a Symptom of Potential Inventory

question 22

Multiple Choice

Which of the following is a symptom of potential inventory fraud?

• A) An auditor observing a weakness in the inventory-receiving procedures
• B) An auditor observing an override of an internal control
• C) An auditor observing inadequate physical controls in the warehouse
• D) An auditor observing the lack of authorization required for purchases of inventory under $1,000

---

Definitions:

Sample Size

The number of observations or elements included in a sample drawn from a population for analysis.

Estimated Multiple Regression

A statistical technique that estimates the relationship between a dependent variable and multiple independent variables.

Regression Plane

The regression plane is a three-dimensional graphical representation used in multiple regression analysis that shows the relationship between two independent variables and one dependent variable.

Squared Horizontal Deviations

The squared differences between each value in a set of values and a chosen fixed point, typically used in the context of variance or standard deviation calculations.