Which of the Following Auditing Procedures Probably Would Provide the Most

question 55

Multiple Choice

Which of the following auditing procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

• A)Trace test counts noted during the entity's physical count to the entity's summarization of quantities.
• B)Inspect agreements to determine whether any inventory is pledged as collateral or subject to any liens.
• C)Select the last few shipping documents used before the physical count and determine whether the shipments were recorded as sales.
• D)Inspect the open purchase order file for significant commitments that should be considered for disclosure.

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Definitions:

De-escalate

To reduce the intensity or severity of a conflict or potentially volatile situation.

Analogical Reasoning

A cognitive process that involves drawing comparisons between two similar situations or problems to deduce new understanding or solutions.

Metaphorical Process

An approach that uses symbolism or analogy to understand or explain complex ideas and situations.

Unproductive Deliberations

Discussions or debates that do not lead to any positive or constructive outcomes, often consuming valuable time and resources without resolving issues.