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:

Freud's Approaches

Refers to the psychoanalytic theories and techniques developed by Sigmund Freud, which emphasize unconscious processes, childhood experiences, and defense mechanisms in shaping personality.

Psychosocial Development

A theory that proposes eight stages through which a healthily developing human should pass from infancy to late adulthood.

Intimate Relationships

Deeply personal and close connections between people, often involving emotional, physical, or sexual intimacy.

Intimacy Versus Isolation

A stage of psychosocial development proposed by Erik Erikson, where the challenge is to develop close, committed relationships with others.