An Auditor Will Usually Trace the Details of the Test

question 62

Multiple Choice

An auditor will usually trace the details of the test counts made during the observation of the physical inventory count to a final inventory schedule. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are:

• A)owned by the entity.
• B)not obsolete.
• C)physically present at the time of the preparation of the final inventory schedule.
• D)included in the final inventory schedule.

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Definitions:

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.

Observational Studies

Research methods where the investigator passively observes and records behavior without influencing the subjects.

Describing Behavior

The process of observing and articulating the actions and reactions of individuals or groups in specific contexts.

Alternate-Forms Reliability

A measure of consistency across different versions of the same test, ensuring similar outcomes.