Which of the Following Is NOT a Factor Affecting the Complexity

question 134

Multiple Choice

Which of the following is NOT a factor affecting the complexity of the audit of inventory?

• A) inventory often being the largest item on the balance sheet
• B) different acceptable valuation methods
• C) counting inventory at different locations
• D) inventory being stored at more than one location

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Definitions:

Performance Exceeded

Surpassing the expected or required level of task completion or achievement of goals.

Management Exception

A management approach where only significant deviations from a set budget or plan are brought to the attention of management.

Concurrent Control

A management strategy that involves monitoring and adjusting ongoing activities and processes to ensure they meet the desired standards.

Bureaucratic Control

Influences behaviour through authority, policies, procedures, job descriptions, budgets and day‐to‐day supervision.