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:

Nucleic Acid

Biomolecules essential to all known forms of life, including DNA and RNA, that carry genetic information necessary for growth, development, functioning, and reproduction.

Protein

Large biomolecules composed of amino acids, essential for various functions within organisms, including structural roles, enzymes, and cell signaling.

Cellulose

A complex carbohydrate composed of glucose units, forming the primary structural component of plant cell walls.

Carbohydrate

A category of macronutrients consisting of sugars, starches, and fibers found in fruits, vegetables, grains, and dairy products, serving as a primary energy source.