In an Audit of Inventories, an Auditor Would Least Likely

question 38

Multiple Choice

In an audit of inventories, an auditor would least likely verify that:

• A)all inventory owned by the entity is on hand at the time of the count.
• B)the entity has used proper inventory pricing.
• C)the financial statement presentation of inventories is appropriate.
• D)damaged goods and obsolete items have been properly accounted for.

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Definitions:

Boundary-Spanning

Activities performed by individuals or groups that involve interactions across an organization's boundaries, facilitating exchange of information or resources.

Sociotechnical

Pertaining to the interrelatedness of social and technical aspects within an organization, emphasizing that technical systems and social systems should be considered together for optimal results.

Managerial

Pertaining to the functions, practices, and responsibilities of managers in an organization.

Human Resource

The division of a business that is charged with finding, screening, recruiting, and training job applicants, as well as administering employee-benefit programs.