Which of the Following Audit Procedures Probably Would Provide the Most

question 38

Multiple Choice

Which of the following audit procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

• A)Trace test counts noted during the physical count of inventory to the summarization of quantities.
• B)Inspect agreements for evidence of inventory held on consignment.
• C)Select the last few shipping advices used before the physical count and determine whether the shipments were recorded as sales.
• D)Inspect the open purchase order file for significant commitments to consider for disclosure.

---

Definitions:

Urinary Bladder

The urinary bladder is a hollow muscular organ that stores urine from the kidneys before disposal by urination.

500 mL

A volume measurement often referencing the typical amount of blood pumped by the left ventricle of the heart in one minute, or the capacity of a standard drink bottle.

Tubular Load

Amount of a substance per minute that crosses the filtration membrane into Bowman’s capsule.

Afferent Arteriole

A small artery that carries blood toward the glomeruli of the kidney, playing a key role in the regulation of blood pressure.