The Reliability of Perpetual Inventory Master Files Affects the Timing

question 2

Multiple Choice

The reliability of perpetual inventory master files affects the timing and ________ of the auditor's physical examination of inventory.

• A) cutoff
• B) accuracy
• C) nature
• D) extent

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Definitions:

Unknown Quantities

Variables in mathematical equations or problems that are not yet determined or are to be solved for.

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Unknown Quantities

Variables or values in mathematics and science that are not known and need to be solved for in an equation or experiment.

Proportion

A statement that two ratios or fractions are equal.