To Detect an Overstatement or Understatement of Inventory and Cost

question 67

Multiple Choice

To detect an overstatement or understatement of inventory and cost of goods sold,the auditor may perform an analytical procedure such as comparing

• A)gross margin percentage with previous years.
• B)inventory turnover with previous years.
• C)current year manufacturing costs with previous years.
• D)extended inventory value with previous years.

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Definitions:

Epidemiological

Relating to the study and analysis of the distribution, patterns, and determinants of health and disease conditions in defined populations.

Vietnam Veterans

Individuals who served in the Vietnam War, whose experiences often include exposure to combat and its long-lasting psychological impacts.

Analogue Study

Research conducted in controlled conditions that simulates real-life scenarios to explore hypotheses about behavior or phenomena.

Learned Helplessness

A situation in which an individual is afflicted with a feeling of incapacity, originating from a significant trauma or consistent failure to accomplish goals.