While Observing a Client's Annual Physical Inventory, an Auditor Recorded

question 25

Multiple Choice

While observing a client's annual physical inventory, an auditor recorded test counts for several items and noticed that certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record

• A)purchase discounts.
• B)purchase returns.
• C)sales.
• D)sales returns.

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Definitions:

Permanent Workforce

Employees who are hired for long-term employment, offering stability and continuity within an organization.

Telecommuting

A work arrangement in which employees do not commute to a central place of work, instead working via electronic communications from a remote location, often their home.

Commuting

The act of traveling between one's home and place of work on a regular basis.

Fixed Hours

A work schedule where the employee is required to work a specific set of hours.