An Auditor Selects a Random Sampling of Tag Numbers and Identifies

question 23

Multiple Choice

An auditor selects a random sampling of tag numbers and identifies the tag with that number attached to the actual inventory.The purpose of the procedure is to:

• A)obtain proper cutoff information.
• B)uncover the inclusion of nonexistent items as inventory.
• C)to determine if the client has adequately priced the inventory item.
• D)to verify that the client has not changed the recorded counts after the auditor left the premises.

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Definitions:

Frozen Yogurt

A frozen dessert made with yogurt and sometimes other dairy products, often viewed as a healthier alternative to traditional ice cream.

Sugar

A sweet-tasting, soluble carbohydrate that is used to sweeten food and beverages, derived from sources like sugarcane and sugar beets.

Market Shift

A significant change in the supply, demand or overall conditions of a market, which can result from various factors like technological advances or shifts in consumer preferences.

Substitute Good

A product or service that consumers can use in place of another to satisfy the same need or desire.