If an Auditor Were Concerned with Obtaining Evidence About the Appropriateness

question 102

Multiple Choice

If an auditor were concerned with obtaining evidence about the appropriateness of the value of inventory, which of the following tests would be most appropriate?

• A) compilation tests
• B) price tests
• C) confirmation of inventory held by outside parties
• D) physical examination of the inventory

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Definitions:

Intuitive Thinking

A cognitive process that enables a person to know something directly without analytic reasoning, bridging the gap between the conscious and nonconscious parts of our mind.

Analytic

Pertaining to or using analysis or logical reasoning.

Abstract

Relates to ideas or concepts that are not physically tangible, often requiring thought and imagination to understand.

Preconventional

The first level in Kohlberg's stages of moral development, where moral reasoning is based on external consequences or personal benefit.