When Perpetual Inventory Records Are Maintained in Quantities and in Dollars

question 45

Multiple Choice

When perpetual inventory records are maintained in quantities and in dollars and internal control over inventory is weak, the auditor would probably:

• A)want the entity to schedule the physical inventory count at the end of the year.
• B)insist that the entity perform physical counts of inventory items several times during the year.
• C)increase the extent of tests for unrecorded liabilities at the end of the year.
• D)have to disclaim an opinion on the income statement for that year.

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Definitions:

High Levels

High Levels typically refer to an amount or concentration of a substance or variable that is considerably above what is considered normal or average.

Commitment

A pledge or promise to do something, often implying dedication and perseverance in personal or professional contexts.

Companionate Love

A form of love characterized by deep affection, friendship, and emotional intimacy, often found in long-term relationships where passion may have faded but a strong bond remains.

Intimate

Characterized by a close, personal, and usually affectionate or loving personal relationship.