Matters That Should Be Considered by the Auditor Before Reaching

question 26

Multiple Choice

Matters that should be considered by the auditor before reaching a conclusion about the reliability of an inventory count include all of the following except:

• A) the type of accounting package used by the firm.
• B) the general condition of the inventory.
• C) departures from the entity's inventory count.
• D) all of the above should be considered

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Definitions:

Personal Residence

The home in which a person or family lives as their primary place of residence, potentially qualifying for certain tax benefits.

Gain Exclusion

A provision in tax law allowing taxpayers to exclude certain types of financial gains from their taxable income, such as the sale of a primary residence.

Spouse

A legally wedded husband or wife.

Gross Profit Percentage

A financial metric used to assess a company's financial health by showing the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.