When Auditing Merchandise Inventory at Year-End, the Auditor Performs a Purchase

question 32

Multiple Choice

When auditing merchandise inventory at year-end, the auditor performs a purchase cut off test to obtain evidence that

• A)All goods purchased before year-end are received before the physical inventory count.
• B)Goods held on consignment for customers are not included in the inventory balance.
• C)The stock of inventory on hand at year-end is neither pledged nor sold.
• D)All goods owned at year-end are included in the inventory balance.

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