Which of the Following Auditing Procedures Most Likely Would Provide

question 32

Multiple Choice

Which of the following auditing procedures most likely would provide assurance about a manufacturing entity's assertion of valuation and allocation of inventory?

• A)Testing the entity's computation of standard overhead rates.
• B)Obtaining confirmation of inventories pledged under loan agreements.
• C)Reviewing shipping and receiving cut-off procedures for inventories.
• D)Tracing test counts to the entity's inventory listing.

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Definitions:

Gestalt Therapy

A therapy that was originated by Fritz Perls and that emphasizes the importance of clients’ fully experiencing, in the present moment, their feelings, thoughts, and actions and then taking responsibility for them.

Childhood Experiences

Events or interactions during early years of life that significantly influence an individual's development and personality.

Psychodynamic Therapies

Psychotherapies that attempt to uncover repressed childhood experiences that are thought to explain a patient’s current difficulties.

Biochemical Imbalance

A theory suggesting that imbalances in certain chemicals in the brain can contribute to various mental health disorders.