Which of the Following Procedures Will Usually Be Performed by the Auditor

question 85

Multiple Choice

Which of the following procedures will usually be performed by the auditor to determine if obsolete inventory exists?

• A)Confirmation of inventory with customers.
• B)Footing the inventory subsidiary ledger.
• C)Tracing inventory ordered by the client to receiving reports.
• D)Analysis of inventory turnover and sales reports.

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Definitions:

Price

The amount of money required to purchase a good, service, or asset, acting as the value measurement for transactions.

Monopolistic Competition

Monopolistic competition is a market structure characterized by many firms selling similar but not identical products, allowing for some degree of market power and product differentiation.

Perfect Competition

A market structure characterized by a large number of small firms producing identical products, with no single firm able to influence market prices, leading to maximum efficiency.

Advertise

Advertising involves the use of messages to educate or persuade a target audience to purchase a product, subscribe to a service, or adopt a viewpoint.