The Auditor Multiplies the Quantity of Inventory on the Inventory

question 105

True/False

The auditor multiplies the quantity of inventory on the inventory ledger by the cost of the inventory to arrive at total inventory balance per product number.This is an example of recalculation by footing.

---

Definitions:

Client-visits

The act of meeting with clients or potential clients, often for the purposes of discussing business opportunities, providing services, or strengthening relationships.

Activity Variance

The difference between the budgeted and actual amount of an activity, such as hours worked or units produced, affecting budget and cost planning.

Budgeting

A financial planning process that involves the estimation of future revenues and expenses over a specified period.

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and taxes.