Which of the Following Inventory Frauds Is Not Identified by Practice

question 109

Multiple Choice

Which of the following inventory frauds is not identified by Practice Alert No. 94-2: Auditing Inventories-Physical Observations?

• A) double-counting inventory
• B) counting obsolete inventory as salable
• C) including inventory for which the corresponding payable has not been recorded
• D) employee theft of inventory item having high sales volume

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Definitions:

Complete Factorial Experiment

An experimental design in which each possible combination of variables and levels is tested.

Replicates

Repeated measurements or experiments conducted under identical conditions to estimate variability or to ensure reliability.

Balanced Experiment

An experimental design where all groups or treatments have an equal number of observations, minimizing bias and variability in results.

Motorcycle Insurance

A policy purchased by motorcycle owners to mitigate costs associated with an accident, theft, or damage.