Which of the Following Auditing Procedures Most Likely Would Provide

question 737

Multiple Choice

Which of the following auditing procedures most likely would provide assurance about a manufacturing entity's inventory valuation?

• A) Testing the entity's computation of standard overhead rates.
• B) Obtaining confirmation of inventories pledged under loan agreements.
• C) Reviewing shipping and receiving cutoff procedures for inventories.
• D) Tracing test counts to the entity's inventory listing.

---

Definitions:

Evolutionary Theory

A scientific explanation for the diversity of life on Earth, proposing that species change over time through processes like natural selection.

Sexual Faithfulness

The practice of staying loyal to one's partner by not engaging in sexual activities outside of the relationship.

Romantic Partners

Individuals engaged in a romantic relationship with one another, characterized by emotional and often physical intimacy.

Behaviorism

A theory in psychology that focuses on observable behaviors rather than internal processes and emphasizes the role of the environment in shaping behavior.