For Each of the Audit Procedures Listed Below Select the Type

question 62

Multiple Choice

For each of the audit procedures listed below select the type of audit procedure,if any,that the auditor performed.A type of audit procedure may be selected once or not at all.
-The auditor obtained a copy of the company's accounting manual and read the section on inventory to prepare for the physical inventory observation.

• A)Inspection of tangible assets
• B)Observation
• C)Recalculation
• D)Inquiry
• E)Inspection of records or documents
• F)Reperformance
• G)Analytical procedures

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Definitions:

Gross Profit

The financial metric representing the difference between sales and the cost of goods sold.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them.

Common Stock

Equities representing ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted to reflect the investor's share of the company's post-acquisition earnings or losses.