For Which of the Following Audit Tests Would an Auditor

question 93

Multiple Choice

For which of the following audit tests would an auditor most likely use attribute sampling?

• A) Making an independent estimate of the amount of a LIFO inventory.
• B) Examining invoices in support of the valuation of fixed asset additions.
• C) Selecting accounts receivable for confirmation of account balances.
• D) Inspecting employee time cards for proper approval by supervisors.

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Definitions:

Weighted Average

A method used to calculate the average cost of inventory that takes into account the varying costs of different batches of goods by weighting each batch by its proportion in the total inventory.