McKesson & Robbins Company Is a Well-Known Audit Case Involving

question 124

Multiple Choice

McKesson & Robbins Company is a well-known audit case involving auditor responsibility. What occurred at the McKesson & Robbins Company to change the way in which auditors audit inventory?

• A) The company recorded nonexistent inventory.
• B) The auditor did not perform any audit tests of the inventory.
• C) The auditor and company colluded to overstate inventory balances.
• D) The company counted inventory three months prior to year-end.

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Definitions:

Instruction B

Specific directive or operation code within a computer program or system.

Examine If Closed

A control system operation that checks whether a specific circuit or contact is in a closed (energized) state.

Examine If Open

Examine If Open is a control logic command used in programming, often in PLCs, to check if a circuit or contact is open before executing further instructions.

Output Energize

A control logic action used in programmable logic controllers (PLCs) to activate an output device.