The Audit Procedures Used in an Observation of the Client's

question 3

Multiple Choice

The audit procedures used in an observation of the client's physical inventory taking are designed primarily to

• A)test and observe the client's physical count of inventory.
• B)verify independently the physical counts obtained by the client.
• C)assist the client in taking test counts of year-end inventory.
• D)determine whether inventory contains obsolete goods.

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Definitions:

Convincing Evidence

Information or data that is so strong or persuasive it leads one to accept an argument or conclusion.

Burden of Proof

The obligation in a legal setting to prove one's assertion or the principle that the party asserting a claim bears the responsibility of proving its truth.

Convincing Evidence

Evidence that is robust and compelling enough to persuade an individual to accept its validity or truth.

Testable Prediction

A statement that can be verified through experimentation or observation, often forming the basis of a scientific hypothesis.