Which of the Following Is an Accurate Statement Regarding Inventory

question 6

Multiple Choice

Which of the following is an accurate statement regarding inventory and risk?

• A) Inventory with a high business risk includes products with potential obsolescence.
• B) Auditors often have a greater concern for misstatements when inventory is stored in one warehouse.
• C) Inherent risk is generally set at low for manufacturing companies.
• D) Performance materiality for inventory is determined before assessing client business risk.

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Definitions:

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common term not present in the conclusion.

Hallucinogenic Drug

A substance that induces alterations in perception, mood, and thought, often creating experiences that differ from reality.

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as a link between the major and minor terms.

Syllogism

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises).