You Are Auditing the Inventory Account and Are Concerned About

question 10

Multiple Choice

You are auditing the inventory account and are concerned about the possibility of an inventory overstatement. What is the best audit procedure to detect damaged inventory?

• A) Observe the condition of inventory during the client's physical count.
• B) Compare the condition of inventory from the previous year's count to the current year.
• C) Compare inventory turnover from the previous year's inventory to the current year's inventory.
• D) Reconcile the inventory counts to the cost accounting records.

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Definitions:

Carnivores

Organisms that primarily consume meat from other animals as their source of nourishment.

Trophic Category

A classification of organisms based on their feeding positions and energy sources within an ecosystem.

Decomposer

Heterotroph that feeds on organic remains by breaking them down into smaller, absorbable subunits.

Mushrooms

Fungi that produce a distinctive fruiting body, often edible and used in cooking, but some species are poisonous or have medicinal properties.