After Accounting for a Sequence of Inventory Tags,an Auditor Traces

question 57

Multiple Choice

After accounting for a sequence of inventory tags,an auditor traces a sample of tags to the physical inventory listing to obtain evidence that all items:

• A)Included in the listing have been counted.
• B)Represented by inventory tags are included in the listing.
• C)Included in the listing are represented by inventory tags.
• D)Represented by inventory tags are bonafide.

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Definitions:

Compounded Semi-annually

This refers to the process of calculating interest on a principal amount at two intervals in a year, effectively increasing the amount of interest earned or paid.

Consolidated Amount

The consolidated amount represents the total figure that combines multiple accounts, funds, or financial statements, providing an overall picture.

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

A medium of exchange that facilitates the transfer of goods and services, traditionally in the form of coins and banknotes, but also digitally.