The Existence of an Adequate Storeroom with a Competent Custodian

question 25

Multiple Choice

The existence of an adequate storeroom with a competent custodian in charge results in the orderly storage of inventory and can protect inventory from theft and misuse.How would an auditor assess these controls?

• A)observation during the audit and inquiry of the accounting staff
• B)inquiry of the accounting staff and inspection of theft statistics
• C)observation during the inventory count and inquiry of inventory personnel
• D)inspection of inventory damage statistics and inquiry of inventory personnel

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Definitions:

Synchromizers

Mechanisms in a manual transmission that help the gears to synchronize speeds before engaging, for smoother shifting.

Allison TC10

A 10-speed fully automatic transmission designed by Allison for heavy-duty trucks, offering fuel efficiency and seamless shifting for commercial use.

Main Pressure

The system pressure used to manage the hydraulic circuits in an automatic transmission.

Modulator Valve

A device in hydraulic systems that regulates pressure or fluid flow, often used in automatic transmissions and braking systems.