Observation of Inventory Counts Is a Required Audit Procedure Whenever

question 14

Multiple Choice

Observation of inventory counts is a required audit procedure whenever:

• A) inventories are material.
• B) it is practicable to do so.
• C) inventories are material and it is practicable to do so.
• D) inventories are material and the auditor considers it to be necessary.

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Definitions:

Insanity Of Offeror

A legal defense where the validity of a contract is questioned due to the mental capability of the party making the offer at the time of agreement.

Counter-Offer

An offer made in response to another's offer, effectively rejecting the original offer and presenting a new one for consideration.

Stipulated Time

A specific period designated in an agreement or contract by which a certain action must be completed or fulfilled.

Market Value

Market value is the estimated price at which an asset or service would trade in a competitive auction setting.