When There Are No Perpetual Inventory Files and Inventory Is

question 53

Multiple Choice

When there are no perpetual inventory files and inventory is material:

• A)an audit cannot be performed, so the auditor must issue a disclaimer.
• B)a physical inventory should be taken by the client near year-end.
• C)the auditor will have to perform the inventory count and determine valuation.
• D)the auditor need not observe inventory counts but must do test counts.

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Definitions:

Signal Perception

The biological process through which organisms detect and respond to external cues or signals, essential for survival, communication, and interaction with the environment.

Maladaptive Response

A reaction or behavior that is counterproductive to an individual's wellbeing or survival.

Fitness Gains

An increase in an organism's genetic contribution to the next generation, often through survival and reproductive success.

Deceitful Signal

A type of communication in the animal kingdom where an organism sends a misleading signal to benefit itself at the expense of another.