To Detect an Overstatement or Understatement of Inventory and Cost

question 67

Multiple Choice

To detect an overstatement or understatement of inventory and cost of goods sold,the auditor may perform an analytical procedure such as comparing

• A)gross margin percentage with previous years.
• B)inventory turnover with previous years.
• C)current year manufacturing costs with previous years.
• D)extended inventory value with previous years.

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Definitions:

Red Cross

An international humanitarian organization that provides emergency assistance, disaster relief, and education within communities under the principles of neutrality and impartiality.

Outpost Stations

Remote or strategically located stations positioned for monitoring, defense, or research purposes.

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A broad range of abilities and competencies from different areas or disciplines.

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