In Companies Where Inventories Are at Multiple Locations, the Auditor's

question 53

Multiple Choice

In companies where inventories are at multiple locations, the auditor's observations ordinarily should include:

• A) all inventory locations.
• B) a random sample of locations.
• C) several inventory locations picked by the auditor.
• D) a representative sample of locations.
• E) all significant inventory locations.

---

Definitions:

Big Four

A term often referring to the four largest professional services networks in the world, offering audit, assurance, tax, consulting, advisory, actuarial, corporate finance, and legal services.

Autos

Short for automobiles, referring to vehicles that operate independently without human push or pull, primarily cars and trucks used for transportation.

Accounting

The systematic process of recording, analyzing, summarizing, and reporting financial transactions of a business or individual.

Oligopolies

Oligopolies are market structures characterized by a small number of firms dominating the market, leading to limited competition.