For the Purpose of Determining Proper Cutoff for Inventory, the Auditor

question 58

Multiple Choice

For the purpose of determining proper cutoff for inventory, the auditor will select a sample from which of the following for a few days before and after year-end?

• A)Materials requisitions.
• B)Production schedules.
• C)Receiving documents.
• D)Purchase orders.

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Definitions:

Efficiency

The ability to accomplish a task using the least amount of resources possible.

Calculability

The ability to assess or measure something quantitatively, often used in the context of evaluating efficiency, productivity, or performance.

Secondary Groups

These refer to groups characterized by formal, impersonal relationships and often have a specific goal or activity at their core.

Primary Groups

Small, close-knit, and often long-term social groups characterized by face-to-face interaction, deep emotional bonds, and a strong sense of loyalty.