Observation of Inventories Is a Required Audit Procedure Whenever

question 75

Multiple Choice

Observation of inventories is a required audit procedure whenever:

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

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Definitions:

Manhole Covers

Heavy, typically circular plates that cover manholes, providing access to underground utilities while preventing accidents or unauthorized entry.

Foundry

An industrial facility where metals are melted and cast into shapes by pouring the molten metal into molds.

Productivity Improvement

The process of increasing the efficiency and effectiveness of a process, often by reducing waste and optimizing resources.

Output

The amount of goods or services produced by a process or system, serving as a measure of productivity and efficiency.