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:

SEC

The United States Securities and Exchange Commission is a federal body tasked with enforcing the laws governing securities and overseeing regulations within the securities sector.

Issuance Of Securities

The process by which securities, such as stocks or bonds, are made available for sale to the public.

Pending Lawsuit

A legal case that has been initiated but not yet resolved or concluded in court.

Non-Profit Organization

An organization that operates for a charitable, educational, or social purpose rather than for profit, reinvesting surplus revenues in its mission.