An Auditor May Not Use the Gross Profit Method to Verify

question 136

True/False

An auditor may not use the gross profit method to verify the accuracy of the reported cost of inventory.

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Definitions:

Psychomotor

Relating to the origin of movement in mental processes, often involving the coordination of mental activity with physical movements.

General

Relating to all or most people, places, or things; widespread, not specific or particular.

Knowledge

Information, understanding, or skill that one gets from experience or education.

Cognitive

Pertaining to the mental actions or processes of acquiring knowledge and understanding through thought, experience, and the senses.