The Overall Objective of the Audit of the Inventory and Warehousing

question 84

Multiple Choice

The overall objective of the audit of the inventory and warehousing cycle is to determine that:

• A) errors in the acquisitions and payroll cycles have not impacted on inventory pricing.
• B) raw materials, work-in-process, finished goods inventory, and cost of goods sold are fairly stated in the financial statements.
• C) raw materials, work-in-process, finished goods inventory, and cost of goods sold are accurate.
• D) inventory is not obsolete.

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Definitions:

Socialize

The process of learning and adopting the norms, customs, and values of society.

Universal

Refers to concepts, conditions, or elements that are common and applicable in all cases, across different cultures, situations, or subjects.

Adolescent Years

A developmental stage that occurs between childhood and adulthood, typically ranging from ages 13 to 19, characterized by significant physical, psychological, and social changes.

Dating

Social activities involved in seeking romantic or sexual partners, often leading to a relationship.