An Auditor Would Be Most Likely to Learn of Slow-Moving

question 84

Multiple Choice

An auditor would be most likely to learn of slow-moving inventory through:

• A) review of the cash payments journal.
• B) inquiry of sales personnel.
• C) review of perpetual inventory records.
• D) physical observation of inventory.

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Definitions:

Vendor-Managed Inventory System

A supply chain practice where the supplier is responsible for maintaining the inventory levels of their products at the customer's premises.

Inventory Supply System

An organizational scheme designed to monitor and manage the goods and materials a business holds in stock.

Retailer's Lead Time

The duration between a retailer placing an order and receiving the goods, impacting inventory management and customer satisfaction.