Which of the Following Is an Auditor least Likely to Consider

question 49

Multiple Choice

Which of the following is an auditor least likely to consider a departure from U.S.generally accepted accounting principles?

• A)Valuing inventory at cost.
• B)Including in inventory items that are consigned out to vendors,but not yet sold.
• C)Using standard cost as the measure of inventory cost.
• D)Including in inventory items shipped subsequent to year-end,but for which valid orders did exist at year-end.

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Definitions:

Firsthand Knowledge

Information or understanding acquired through direct experience or observation, rather than secondhand sources.

Generalizability

The extent to which research findings and conclusions from a study conducted on a sample population can be applied to the larger population.

Asian Farmers

Agricultural workers in Asia, who cultivate crops and raise livestock on small-scale family-owned farms or on larger agricultural holdings.

Cognitive Processes

Refers to the mental actions or strategies involved in acquiring, processing, and storing knowledge.