One of the Auditor's Primary Concerns in Verifying the Transfer

question 59

Multiple Choice

One of the auditor's primary concerns in verifying the transfer of inventory from one location to another is that

• A) recorded transfers exist.
• B) all actual transfers are recorded.
• C) the quantity, date, and description of all recorded transfers are accurate.
• D) all of the above.

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Definitions:

Inventory Cost

The total cost associated with acquiring, holding, and processing inventory, including purchase costs, storage fees, and handling charges.

Estimated Cost

The anticipated cost or price of an item, service, or project based on current information, forecasts, and analyses before actual costs are incurred.

Estimated Method

An approach that involves approximating financial figures or outcomes based on available data and educated assumptions.

Perpetual Inventory

An inventory system that records changes in inventory levels immediately as they occur, facilitating real-time tracking of stock.