The Auditor Has Determined That the Perpetual Inventory Master Files

question 43

Multiple Choice

The auditor has determined that the perpetual inventory master files are high quality,assessing control risk related to physical observation of inventory as low.How does this affect audit testing? The auditor may

• A)reduce the extent of control tests over data entry to the master file.
• B)reduce the extent of the tests of physical inventory.
• C)reduce the extent of control tests with respect to program change controls.
• D)increase assessed inherent risks over the tests of physical inventory.

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Definitions:

Continual Basis

An ongoing, without interruption, process or activity.

Job-Related Stress

The physical and emotional strain that can occur as a result of job pressures, demands, or work environment.

Violence Prevention Policy

Guidelines and measures implemented by an organization to prevent and address violence within the workplace, ensuring the safety and well-being of employees.

General Types Of Stress

The main categories of stress experienced by individuals, including acute, chronic, and episodic acute stress.