A Common Inventory Observation Procedure Is to Record in the Working

question 38

Multiple Choice

A common inventory observation procedure is to record in the working papers for subsequent follow-up the last shipping document number used at year-end.The audit objective being achieved by this procedure is

• A)inventory as recorded exists.
• B)existing inventory is counted and tagged.
• C)information is obtained to make sure sales and inventory purchases are recorded in the proper period.
• D)tags are accounted for to make sure none are missing.

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Definitions:

Short-Term Truck Rentals

Rental services offering trucks for temporary use, typically ranging from a few hours to several weeks.

Percent Change

The mathematical calculation to determine the difference in percentage between two values.

Percent Less

Percent less refers to the reduction or decrease of a quantity or number by a specified percentage.

Decreased By

A term used to indicate that a quantity is reduced by a certain amount.