A Common Inventory Observation Procedure Is to Select a Random

question 21

Multiple Choice

A common inventory observation procedure is to select a random sample of tag numbers and identify the tag with that number attached to the actual inventory item. The audit objective being achieved by this procedure is

• A) inventory as recorded on tags actually exists (existence).
• B) existing inventory is counted and tagged (completeness).
• C) inventory is counted accurately (accuracy).
• D) inventory is classified correctly (classification).

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Definitions:

Luteinizing Hormone

A hormone secreted by the anterior pituitary gland that plays a key role in regulating the menstrual cycle and ovulation in females and testosterone production in males.

Progesterone

A steroid hormone secreted by the ovary (mainly by the corpus luteum) and placenta; stimulates the uterus (to prepare the endometrium for implantation) and breasts (for milk secretion).

Endometrium

The uterine lining.

Seminiferous Tubules

Coiled tubules in the testes in which spermatogenesis takes place in male vertebrates.