When Verifying the Transfer of Inventory from One Location to Another

question 12

True/False

When verifying the transfer of inventory from one location to another, the audit objectives with which the auditor is primarily concerned are occurrence of recorded transfers, completeness of recorded transfers, and accuracy of recorded transfers.

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Definitions:

Manufacturer

A company or individual that produces finished goods from raw materials through the use of tools, human labor, machinery, and chemical processing.

Lease Agreements

Contracts between a lessor and a lessee that grant the lessee the right to use an asset for a specific period in exchange for payment.

Lower Taxes

Reductions in the amount of tax imposed by a governmental authority.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting its liquidity.