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:

Biological Clocks

Internal mechanisms that regulate the timing of biological processes and behaviors, aligning them with daily and seasonal rhythms.

Cholecystokinin

A hormone secreted by the small intestine that aids digestion by stimulating the gallbladder to contract and release stored bile into the intestine.

Core Body Temperature

The temperature of the internal environment of the body, which is maintained within a narrow range despite external temperature changes.

Delta Waves

Brain waves with a frequency of 1-4 Hz that are associated with the deepest stages of sleep and brain development in young children.