When the Client's Physical Inventory Takes Place Before the Last

question 39

Multiple Choice

When the client's physical inventory takes place before the last day of the year, it is still necessary to perform an accounts payable cutoff at the time of the physical count. In addition, the auditor must verify whether all acquisitions taking place between the physical count and the end of the year were added to:

• A) accounts payable and cost of goods sold.
• B) accounts payable.
• C) the physical inventory.
• D) the physical inventory and accounts payable.

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Definitions:

Ethnomethodological

Relates to a sociological method that studies the ways people make sense of their everyday lives.

Conversational Analysis

A methodology in sociolinguistics and sociology that studies the structure and patterns of conversation to understand social interactions.

Positive Responses

Positive Responses are affirmative reactions or feedback to stimuli, interactions, or situations, suggesting agreement, approval, or pleasure.

Ethnomethodological

Pertaining to the study of the methods people use in everyday life to create a sense of social order and understand their world.