Periodic or Cycle Counts of Selected Inventory Items Are Made

question 60

Multiple Choice

Periodic or cycle counts of selected inventory items are made at various times during the year rather than during a single inventory count at year-end. Which of the following is necessary if the auditor plans to observe inventories at interim dates?

• A)Complete recounts by independent teams are performed.
• B)Perpetual inventory records are maintained.
• C)Unit cost records are integrated with production accounting records.
• D)Inventory balances are rarely at low levels.

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Definitions:

Negative Reinforcement

A behavior modification technique where an unpleasant or aversive stimulus is removed following a desired behavior, increasing the likelihood of that behavior being repeated.

Modelling

A method used in cognitive behavior therapy and social learning theory where individuals learn through observing and imitating others.

Cumulative Recorder

A device used in behavioral psychology to graphically record responses and visualize the rate of behavior over time.

Upward Slope

Represents an increase or positive change in a graph when one variable rises as another variable increases.