In Addition to Performing Analytical Procedures That Examine the Relationship

question 93

Essay

In addition to performing analytical procedures that examine the relationship of inventory account balances with related financial statement accounts, auditor's will often use nonfinancial measures in determining the reasonableness of inventory balances. List below at least two nonfinancial measures that may be useful to auditors.

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Definitions:

Oldest Oceanic Crust

The most ancient sections of Earth's oceanic crust, markedly older than most other ocean floor areas, typically found in the deep ocean basins.

Plate Boundary

The edges where two or more of Earth's tectonic plates meet, which are zones of seismic and volcanic activity.

Seafloor Spreading

The formation of fresh oceanic crust at mid-ocean ridges, which gradually drifts away from the ridge, aiding in the movement of continents.

Magnetic Stripe

Linear patterns of magnetism found on the seabed that are parallel to ocean ridges, providing evidence for the theory of plate tectonics.