The Auditor Traces Inventory Tags Identified as Non-Owned During the Physical

question 75

Multiple Choice

The auditor traces inventory tags identified as non-owned during the physical observation to the inventory listing schedule to make sure these have not been included. This test satisfies the balance-related audit objective of

• A) cutoff.
• B) rights.
• C) accuracy.
• D) existence.

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Definitions:

1st Quartile

The 1st quartile, also known as the lower quartile, is a statistical measure that divides the lowest 25% of data in a dataset from the highest 75%.

3rd Quartile

The value below which 75% of the data in a dataset falls, marking the upper quartile in a distribution of values.

Negatively Skewed Distribution

A distribution where the tail on the left side of the probability density function is longer or fatter than the right side.

1st Quartile

The value below which 25% of the data falls, often used in statistics to measure the spread of a data set.