When There Are No Perpetual Inventory Files and Inventory Is

question 53

Multiple Choice

When there are no perpetual inventory files and inventory is material:

• A)an audit cannot be performed, so the auditor must issue a disclaimer.
• B)a physical inventory should be taken by the client near year-end.
• C)the auditor will have to perform the inventory count and determine valuation.
• D)the auditor need not observe inventory counts but must do test counts.

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Definitions:

Express Interests

The act of clearly communicating one's desires and priorities in a negotiation.

Mirror Back

A communication technique used to validate what the speaker has said by paraphrasing or repeating their message to ensure understanding and empathy.

Single Negotiator

An individual who represents a party or multiple parties in a negotiation process.

Final Agreement

The conclusive arrangement or contract reached by negotiating parties, marking the end of negotiations and establishing the terms of the deal.