The Auditor's Strategy in Performing Test Counts During the Inventory

question 11

Multiple Choice

The auditor's strategy in performing test counts during the inventory observation is to:

• A) concentrate tests on high dollar items and take a representative sample of other items.
• B) test all high dollar items.
• C) randomly select all test items.
• D) concentrate tests in areas where employees seem to be disregarding the inventory instructions.
• E) sequentially select all test items.

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Definitions:

Line-Judging Task

A cognitive task used in research to study perceptual or judgmental biases by asking participants to make decisions about visual lines.

Social Influence

The effect that individuals or groups can have on the beliefs, feelings, and actions of others, leading to changes in attitudes or behaviors.

Asch's Experiments

Studies conducted by Solomon Asch that demonstrated the power of conformity in groups, where individuals often go along with a group's consensus even when it is clearly incorrect.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.