From Which One of the Following Evidence- Gathering Audit Procedures

question 78

Multiple Choice

From which one of the following evidence- gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?

• A) Confirmation of inventories in a public warehouse
• B) Written inventory representations from management
• C) Auditor's recomputation of inventory extensions
• D) Observation of physical inventory counts

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Definitions:

Stretched Pebbles

Elongated pebbles that have been deformed and stretched by tectonic forces in a metamorphic environment.

Anticline

An anticline is a type of fold that is arch-shaped and has its oldest beds at its core, typically resulting from compressional forces in the Earth's crust.

Syncline

A geological structure where rock layers fold downward, creating a U-shaped valley.

Monocline

A geological fold in which all layers are inclined in the same direction, forming a step-like structure in the Earth's strata.