When a Significant Proportion of Inventories Is Stored in a Public

question 29

True/False

When a significant proportion of inventories is stored in a public warehouse, the auditor may not be satisfied with its existence by merely obtaining a confirmation from the warehouseman.

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Definitions:

"True" Zero

A point on a scale of measurement that represents a complete absence of the property being measured, as opposed to a mere baseline or reference point.

NOIR

A commonly used acronym in statistics that stands for Nominal, Ordinal, Interval, and Ratio - the four levels of measurement for variables.

Intercoder Reliability

A measure of the degree to which different people coding qualitative data arrive at consistent results.

Reliable

Reliability refers to the consistency and dependability of a measure or test, in that repeated applications yield similar results under consistent conditions.