An Auditor Who Wished to Test for the Existence or Occurrence

question 43

Multiple Choice

An auditor who wished to test for the existence or occurrence of inventory would most likely select a sample of inventory items from the perpetual records and

• A)trace additions to the general ledger.
• B)vouch additions to receiving reports.
• C)vouch additions to sales invoices.
• D)trace receipts to receiving reports.

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Definitions:

Observed Variation

The variance noticed in data due to different factors that distinguish one piece of data from another.

X1

Often used to denote the first variable or predictor variable in statistical models and equations.

X2

X2 often symbolizes an algebraic expression where a variable, x, is squared or raised to the power of 2, indicating a quadratic relationship.

Calorie Content

Calorie content is the amount of energy provided by consuming a certain amount of food or drink, measured in calories.