To Gain Assurance That All Inventory Items in an Entity's

question 3

Multiple Choice

To gain assurance that all inventory items in an entity's inventory listing schedule are valid, an auditor most likely would trace:

• A)inventory tags noted during the auditor's observation to items listed in the inventory listing schedule.
• B)inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices.
• C)items listed in the inventory listing schedule to inventory tags and the count sheets.
• D)items listed in receiving reports and vendors' invoices to the inventory listing schedule.

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Definitions:

Wilcoxon Rank-sum Test

A nonparametric test that compares two independent samples to assess whether their population mean ranks differ, used when data are not normally distributed.

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to determine if they come from the same population.

Wilcoxon Rank Sum Test

A nonparametric statistical test used to compare two independent groups to assess whether their populations have the same distribution.

Alternative Hypothesis

The hypothesis that proposes a difference or effect, in contrast to the null hypothesis, which assumes no effect or difference.