In Obtaining an Understanding of a Manufacturing Entity's Internal Control

question 44

Multiple Choice

In obtaining an understanding of a manufacturing entity's internal control concerning inventory balances, an auditor most likely would:

• A)review the entity's description of inventory policies and procedures.
• B)perform test counts of inventory during the entity's physical count.
• C)analyze inventory turnover statistics to identify slow-moving and obsolete items.
• D)analyze monthly production reports to identify variances and unusual transactions.

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Definitions:

Major Structure

The primary or most stable configuration out of various potential structures for a molecule.

Necessary Reagents

Specific chemicals or substances required to carry out a particular chemical reaction.

Reaction

A process in which chemical substances convert to other substances through the breaking and forming of chemical bonds.

Synthetic Steps

The individual reactions or processes that are performed in sequence to synthesize a desired chemical compound from simpler starting materials.