Which of the Following Auditing Procedures Most Likely Would Provide

question 6

Multiple Choice

Which of the following auditing procedures most likely would provide assurance about a manufacturing entity's inventory valuation?

• A)Vouching the raw materials' costs to vendors' invoices.
• B)Obtaining confirmation of inventories pledged under loan agreements.
• C)Reviewing shipping and receiving cutoff activities for inventories.
• D)Tracing test counts to the entity's inventory listing.

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Definitions:

Powered Test Light

A diagnostic tool used in automotive and electrical applications to check for the presence of electricity in a circuit.

Ohmmeter

A device used to measure electrical resistance within a circuit.

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An electric motor that uses permanent magnets instead of electromagnets as the field coils. They draw less power than motors with electromagnetic field coils and can be made smaller as a result.

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An electrically controlled system that locks and unlocks the doors of a vehicle, offering convenience and increased security.