When Auditors Observe the Client Counting Inventory, They Should Be

question 99

Multiple Choice

When auditors observe the client counting inventory, they should be careful to do all of the following except

• A) inquire about items that are likely to be obsolete or damaged.
• B) calculate the unit cost of the inventory items.
• C) discuss with management the reasons for excluding any material items.
• D) observe the counting of the most significant items.

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Definitions:

Expressed

Expressed in a straightforward or obvious manner; explicitly revealed.

Proposition Not-p

A proposition that negates another proposition, symbolically represented as ¬p.

Contraries

Statements, ideas, or actions that are opposed to each other; in logic, two propositions are contraries if they cannot both be true but can both be false.

Negated

Made ineffective or invalidated; in logic, a proposition that denies or contradicts another proposition.