Auditor Tests of the Physical Controls Over Raw Materials, Work

question 135

Multiple Choice

Auditor tests of the physical controls over raw materials, work in process, and finished goods are generally limited to

• A) observation and confirmation.
• B) observation and inquiry.
• C) inquiry and reconciliation.
• D) observation and reconciliation.

---

Definitions:

Downsizing

The practice of reducing a company's size through layoffs, closures, or the elimination of certain products or services, often to cut costs.

Deceptive Practice

Activities or practices by businesses that are misleading or dishonest, which can mislead consumers and are often illegal.

Distinguish

To recognize or point out the differences between two or more items, making clear the unique aspects of each.

Branding

The process of creating a unique image and identity for a product or service in the consumer's mind, using names, terms, signs, symbols, designs, or a combination of these.