Your Client Counts Inventory Three Months Before the End of the Fiscal

question 56

Multiple Choice

Your client counts inventory three months before the end of the fiscal year. Internal controls over inventory are excellent. Which procedure is not necessary for the inventory roll-forward?

• A)Check that shipping documents for the last three months agree with perpetual records.
• B)Tracing receiving reports for the last three months to perpetual records.
• C)Compare gross margin percentages for the last three months.
• D)Request the client to recount inventory at the end of the year.

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Definitions:

Hand Reflexology

A form of therapy that involves applying pressure to specific points on the hands believed to correspond with different parts of the body to promote healing and relieve stress.

Reflexology

An alternative medicine practice involving the application of pressure to specific points on the feet, hands, or ears, based on the belief that these points correspond to different organs and systems in the body.

Corresponding Body Part

A specific region or organ of the body that relates to, or is associated with, a particular function or activity.

Homeopathy

A 200-year-old system of medicine based on the Law of Similars. This means that if a dose of a substance can cause a symptom, that same substance in minuscule amounts can cure the symptom.