For Each of the Following, State Whether It Is a Test

question 34

Essay

For each of the following, state whether it is a test of details of account balances or a test of details of disclosures. Then note for which assertion the test provides evidence.
1. Inspect loan agreements under which an entity's inventories are pledged.
2. Review inventory compilation for proper classification among raw materials, work in process, and finished goods.
3. Observe the count of physical inventory.
4. Trace test counts and tag control information to the inventory compilation.
5. Inquire of management about issues related to LIFO liquidations.
6. Review book-to-physical adjustments for possible misstatements.

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Definitions:

Repressed Unconscious

A concept in psychoanalytic theory referring to feelings, thoughts, and desires unconsciously held out of awareness, due to being deemed unacceptable or threatening.

Conditioning

A learning process in which an individual's behavior becomes dependent on or is triggered by a specific environmental stimulus.

Phobic Behaviors

Actions or reactions that are excessively fearful of specific objects, situations, or activities.

Reinforcement

In behavior psychology, it refers to any stimulus which strengthens or increases the probability of a specific response or behavior.