Which of the Following Is Not a Standard Procedure That

question 35

Multiple Choice

Which of the following is not a standard procedure that the auditor normally should follow in the observation of inventory at year-end?

• A)Observe the client taking inventory.
• B)Make selected test counts and trace into client's inventory compilation.
• C)Look for slow-moving,obsolete,or damaged inventory.
• D)Review disclosure of inventory valuation.

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Definitions:

Risk-Free Return

The theoretical return on an investment with zero risk of financial loss, often represented by the return on government securities.

Treynor's Measure

A performance metric for determining how well an investment portfolio has compensated the investor for the risk taken, using beta as the risk measure.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government bonds or bills, serving as a benchmark for assessing investment performance.

Information Ratio

This ratio measures the excess return of a portfolio over the benchmark's return, relative to the volatility of those excess returns, indicating the portfolio manager's ability to generate consistent excess returns.