For Which of the Following Tests Would the Auditor Use

question 25

Multiple Choice

For which of the following tests would the auditor use generalised audit softwareto test the completeness assertion of inventory?

• A)Identification of inventory items which haven't been sold for three months.
• B)A sequence check looking for missing purchase invoice numbers.
• C)A sequence check looking for duplicate purchase invoice numbers.
• D)Selecting items from the inventory records in order to trace back to physical inventory counts.

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Definitions:

World Price

The international market price of a good or service, influenced by global supply and demand.

Free Trade

An economic policy that allows goods and services to be bought and sold across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit exchange.

Consumer Surplus

The contrast between the potential payment by consumers for a product or service and their real expenditure.

Autarky

An economic system or policy of self-sufficiency where a country does not engage in international trade.