The Overall Objective in the Audit of the Inventory and Distribution

question 69

Multiple Choice

The overall objective in the audit of the inventory and distribution cycle is to determine that

• A)costs of goods sold and gross profit are correctly stated on the income statement.
• B)inventory items on the balance sheet are neither fraudulent nor materially in error.
• C)gross profit and inventory are fairly presented on the financial statements.
• D)inventory and cost of goods sold are fairly stated on the financial statements.

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Definitions:

Motown

A style of soul music with a distinct pop influence that emerged from Detroit, Michigan in the 1960s, also referring to the Motown Record Corporation.

Atlantic

The term "Atlantic" in this context could refer to transatlantic communications and cultural exchanges between continents, emphasizing the historical and ongoing interactions across the Atlantic Ocean.

Columbia

is a country located in the northern part of South America, known for its diverse landscapes and rich cultural heritage.

Freedom of Information

Refers to the right of access to information held by public bodies, enabling citizens to stay informed about governmental activities.