Why Does the Auditor Recount the Client's Inventory

question 6

Multiple Choice

Why does the auditor recount the client's inventory?

• A) to ensure that none is lost or intentionally omitted (completeness)
• B) to obtain proper cutoff information for sales and acquisitions (cutoff)
• C) to confirm that inventory as recorded on tags exists (existence)
• D) to ensure that inventory is counted accurately (accuracy)

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Definitions:

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, regardless of the quantity purchased or consumer identity.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at different prices.