Which of the Following Tests Would the Auditor Use Generalised

question 26

Multiple Choice

Which of the following tests would the auditor use generalised audit software for in order to test the completeness assertion of inventory?

• A) Identification of inventory items which haven't been sold for three months.
• B) A sequence check looking for missing purchase invoice numbers.
• C) A sequence check looking for duplicate purchase invoice numbers.
• D) Selecting items from the inventory records in order to trace back to physical inventory counts.

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Definitions:

Demand for a Product

Refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period of time.

Price of a Product

The amount of money required to purchase a specific good or service, determined by various factors including demand, supply, and production costs.

Pricing Power

The ability of a firm to dictate or influence the price of its goods or services in the market.

Elasticities of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, showing the responsiveness of consumers.