Audit Procedures Used in the Observation of a Client's Physical

question 35

Multiple Choice

Audit procedures used in the observation of a client's physical inventory count are designed primarily to

• A)Test and observe the client's physical count of inventory.
• B)Independently verify the physical counts recorded by the client.
• C)Assist the client in taking test counts of year-end inventory.
• D)Determine whether inventory contains obsolete goods.

---

Definitions:

Administering Plans

The process of implementing and managing organizational plans, strategies, or policies effectively.

Monitoring Performance

The process of continually reviewing and assessing the work performance of employees.

Incentive-Pay Plans

Compensation strategies designed to motivate employees by tying a portion of their pay directly to their performance or achievements.

Scanlon Plan

A type of gainsharing program that incentivizes employees to improve productivity through teamwork and sharing the cost savings.