Which One of the Following Procedures Would Not Be Appropriate

question 97

Multiple Choice

Which one of the following procedures would not be appropriate for an auditor in discharging his responsibilities concerning the client's physical inventories?

• A) confirmation of goods in the hands of public warehouses
• B) supervising the taking of the annual physical inventory
• C) carrying out physical inventory procedures at an interim date
• D) obtaining written representation from the client as to the existence, quality, and dollar amount of the inventory

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Definitions:

Current Liabilities

Financial commitments that need to be settled within a year or during the regular operation period of a company.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Closing

The process of finalizing accounts at the end of an accounting period, transferring temporary account balances to permanent ones.

Zeros Out

The process of adjusting an account balance to zero, often used in the context of budgeting or closing temporary accounts at the end of an accounting period.