When Auditing Merchandise Inventory at Year-End,the Auditor Performs a Purchase

question 16

Multiple Choice

When auditing merchandise inventory at year-end,the auditor performs a purchase cutoff test to obtain evidence that

• A)all goods purchased before year-end are received before the physical inventory count.
• B)no goods held on consignment for customers are included in the inventory balance.
• C)no goods observed during the physical count are pledged or sold.
• D)all goods owned at year-end are included in the current period inventory balance.

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Definitions:

Evidence

Information or data that supports a conclusion, claim, or proposition.

Terms

Specific words or expressions used in particular contexts or fields, often carrying defined meanings or connotations.

Lower In Status

A relative position in a social hierarchy that is considered less prestigious, powerful, or important compared to others.

Respect

Admiration or high regard for someone or something, often due to their abilities, qualities, or achievements.