You Are Auditing the Inventory Account and Are Concerned About

question 10

Multiple Choice

You are auditing the inventory account and are concerned about the possibility of an inventory overstatement. What is the best audit procedure to detect damaged inventory?

• A) Observe the condition of inventory during the client's physical count.
• B) Compare the condition of inventory from the previous year's count to the current year.
• C) Compare inventory turnover from the previous year's inventory to the current year's inventory.
• D) Reconcile the inventory counts to the cost accounting records.

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Definitions:

Arsenic

Referred to as a semimetallic chemical element, recognized for its role in historical poisoning cases, it has applications in electronics and wood preservation.

Lethal Dosage

The amount of a substance required to cause death in a living organism, often abbreviated as LD.

Mg

The chemical symbol for magnesium, a shiny gray solid that has the atomic number 12 and is an essential element for living cells.

Arsenic

A toxic metalloid with the symbol As, known for its various allotropes and compounds, many of which are potent poisons.