When Evaluating Inventory Controls, an Auditor Would Be Least Likely

question 17

Multiple Choice

When evaluating inventory controls, an auditor would be least likely to

• A)inspect documents.
• B)make inquiries.
• C)observe procedures.
• D)consider policy and procedure manuals.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Market Price

The current rate for transactions involving a service or asset.

Stock Dividend

A stock dividend is a distribution of additional shares of a company's stock to its shareholders instead of cash dividends.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.