The Overall Objective in the Audit of the Inventory and Distribution

question 69

Multiple Choice

The overall objective in the audit of the inventory and distribution cycle is to determine that

• A)costs of goods sold and gross profit are correctly stated on the income statement.
• B)inventory items on the balance sheet are neither fraudulent nor materially in error.
• C)gross profit and inventory are fairly presented on the financial statements.
• D)inventory and cost of goods sold are fairly stated on the financial statements.

Recognize the importance of hypothesis formation and testing in research methodology.

Understand the role and limitations of technology in facilitating research.

Understand the concept of response bias in market research and its implications.

Identify and discuss the potential measurement problems in marketing research.

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