Which of the Following Is an Accurate Statement Regarding the Audit

question 62

Multiple Choice

Which of the following is an accurate statement regarding the audit of pricing and compilation of inventory?

• A) Inventory compilation tests include all of the tests of the client's unit prices to determine whether they are correct.
• B) The review for obsolete inventory should be performed by the accounting department.
• C) The most important internal control for accurate unit costs is external verification by an outside consultant.
• D) Inventory compilation internal controls are needed to ensure that the physical counts are correctly summarized and priced.

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Definitions:

Good Weather

Favorable meteorological conditions that positively influence activities, such as agriculture, outdoor events, and general mood.

Consumer Surplus

The discrepancy between the aggregate willingness to pay among consumers for a service or product and their actual payment.

Willingness to Pay

The maximum amount a consumer is ready to pay for a product or service, reflecting the value the consumer places on it.

Market Quantity

The total amount of goods or services that are available for purchase within a particular market.