The Audit Tests to Verify That the Client Is Using

question 89

Multiple Choice

The audit tests to verify that the client is using an inventory method which is generally accepted and to verify that physical counts were correctly summarized are performed during the audit of the

• A) acquisition and payments cycle.
• B) payroll and personnel cycle.
• C) inventory and warehousing cycle.
• D) sales and collection cycle.

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Definitions:

Illusory Correlations

The perception of a relationship between two variables even when no such relationship exists.

Kernel of Truth

The idea that many myths, stereotypes, or exaggerated claims have a basis in fact, however small or misinterpreted that fact may be.

Perceived Homogeneity

The tendency to see members of an out-group as more similar to each other than they really are or than members of the in-group.

Stereotypes

Oversimplified generalized beliefs or expectations about the characteristics and behaviors of members of a group, often leading to prejudgment.