From Which of the Following Evidence-Gathering Audit Procedures Would an Auditor

question 106

Multiple Choice

From which of the following evidence-gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?

• A) observation of physical inventory counts
• B) written inventory representations from management
• C) confirmation of inventories in a public warehouse
• D) auditor's recomputation of inventory extensions

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Definitions:

Infinite Number

A quantity that has no end or limit, often used in mathematics to describe a value that grows without bounds.

Positively Skewed

Describes a distribution of data where the tail extends more towards the higher value side, indicating that the mean and median are greater than the mode.

Negative Scores

Values that fall below the designated origin or point of reference, often indicating less than average results or deficits.

Frequency Distributions

A way of summarizing data that shows the number of observations that fall within a range of values.