The Audit of Year-End Physical Inventories Should Include Steps to Verify

question 59

Multiple Choice

The audit of year-end physical inventories should include steps to verify that the entity's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a:

• A)sale in the subsequent period.
• B)purchase in the current period.
• C)sale in the current period.
• D)purchase return in the subsequent period.

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Definitions:

Open Spaces

Areas of land, typically undeveloped, reserved for recreation, leisure, or preservation, often contributing to community health and well-being.

Dysfunction

An impairment or abnormal functioning of a bodily system or organ.

Bedlam

Historically, a term associated with chaos and confusion, originally referred to London’s Bethlem Royal Hospital, an asylum known for its poor conditions and treatment of the mentally ill.

Mentally Ill Patients

Individuals who suffer from a wide range of mental health conditions that affect their mood, thinking, and behavior.