From the Auditor's Point of View, Inventory Counts Are More

question 2

Multiple Choice

From the auditor's point of view, inventory counts are more acceptable prior to the year-end when:

• A)accurate perpetual inventory records are maintained.
• B)control risk is high.
• C)significant amounts of inventory are held on a consignment basis.
• D)inventory turnover has decreased from the prior year.

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Definitions:

Protectionism

A policy of imposing restrictions on imports, often through tariffs and quotas, to shield domestic industries from foreign competition.

Frederic Bastiat

A French economist and writer known for his advocacy of free-market policies and his critique of protectionism in the 19th century.

European Union

A political and economic union of 27 European countries that are located primarily in Europe.

World Exports

This term relates to the total sum of goods and services that are sold and shipped by one country to others across the globe.