CAS for Audit Procedures for Inventory Indicate That the Auditor

question 52

Multiple Choice

CAS for audit procedures for inventory indicate that the auditor

• A)must count the inventory.
• B)must be present at the inventory count and must receive adequate documentation from the client regarding the effectiveness of inventory-taking.
• C)must be present at the inventory count and evaluate the methods followed in the determination of quantities and values.
• D)need not be present at the count but must review the methods followed in the determination of quantities and values.

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Definitions:

Present Supplier

The current provider of goods or services to a customer, against whom potential new suppliers are competing.

Money Objection

A price-oriented objection.

Purchase

The act of buying goods or services, involving an exchange of money for the desired item.

Source Objection

Refers to specific concerns or challenges raised regarding a proposal or idea, based on the origin or basis of the information.