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In Addition to Performing Analytical Procedures That Examine the Relationship

question 93

Essay

In addition to performing analytical procedures that examine the relationship of inventory account balances with related financial statement accounts, auditor's will often use nonfinancial measures in determining the reasonableness of inventory balances. List below at least two nonfinancial measures that may be useful to auditors.


Definitions:

Evaluative

Relating to the assessment or judgment of the performance, value, or quality of someone or something.

Negatively Worded

Refers to items or questions in surveys or assessments that are phrased in a manner that implies the opposite of what is being asked to prevent bias.

Negatively Worded

Refers to the use of negative phrasing in questions or statements, which can sometimes lead to confusion or misinterpretation in surveys or tests.

Yea-Saying

A response bias in surveys or questionnaires where participants tend to agree with statements regardless of their content, often to be agreeable or due to misunderstanding.

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