Which of the Following Is an Example of the Type

question 91

Multiple Choice

Which of the following is an example of the type of analytics that an auditor would use for inventory?

• A) Number of day's sales in receivables compared to industry averages.
• B) Inventory turnover for the previous five years.
• C) Days outstanding in accounts payable.
• D) Salaries of marketing personnel as a percent of total inventory.

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Definitions:

Anticipating Obstacles

The process of identifying potential challenges or barriers in advance to prepare or develop strategies to overcome them.

Time-projection Exercise

A technique used in planning or therapy where individuals imagine and describe their future in detail.

Emotionally Charged Issues

Topics or subjects that provoke strong emotional reactions and often require sensitive handling.

Discouraged

A feeling of having lost confidence or enthusiasm; demotivated.