An Auditor Has Identified a Risk of Material Misstatement Due

question 172

Multiple Choice

An auditor has identified a risk of material misstatement due to fraud related to the inventory function. Which is least likely to be an appropriate response?

• A) Observing inventory counts on an unannounced basis.
• B) Requesting that management more closely monitor the inventory function.
• C) Assigning more experienced personnel to the engagement.
• D) Requesting that inventory be counted on a date close to the end of the reporting period.

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Definitions:

Compound

A material composed of multiple elements chemically combined in a specific proportion.

Soluble

The ability of a substance to dissolve in a solvent, forming a homogeneous solution.

Hydrocarbon Alkane

Saturated hydrocarbons consisting only of single bonds between carbon atoms, with a general formula of CnH2n+2.

Carbon Atoms

The core building blocks of organic molecules, consisting of six protons, six neutrons, and six electrons.