In Auditing a Manufacturing Entity,which of the Following Procedures Would

question 32

Multiple Choice

In auditing a manufacturing entity,which of the following procedures would an auditor least likely perform to determine whether slow-moving,defective,and obsolete items included in inventory are properly identified?

• A)Examine inventory items for dust or rust during observation.
• B)Trace tag counts to final inventory listing.
• C)Compare inventory balances to anticipated sales volume.
• D)Review inventory experience and trends.

---

Definitions:

Revenues

Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Asset Account

An account that represents a resource owned or controlled by a company that is expected to provide future economic benefits.

Consumed

Used up or exhausted, particularly in reference to resources or goods.

Liability

A financial obligation or amount owed by a business to creditors, typically reflected on the balance sheet.