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.

---

Definitions:

Management Strategy

An overarching plan or set of goals designed to achieve competitive advantage and meet organizational objectives.

Content Theories

Theories in psychology and management that explain the specific things that motivate individuals at work, focusing on the content of those motivators.

Human Needs

Fundamental physiological and psychological requirements that motivate individuals and influence their behavior.

Reinforcement Theories

Psychological theories suggesting that behavior can be shaped by controlling the consequences that follow those behaviors, often applied in organizational settings to motivate employees.