Periodic or Cycle Counts of Selected Inventory Items Are Made

question 60

Multiple Choice

Periodic or cycle counts of selected inventory items are made at various times during the year rather than during a single inventory count at year-end. Which of the following is necessary if the auditor plans to observe inventories at interim dates?

• A)Complete recounts by independent teams are performed.
• B)Perpetual inventory records are maintained.
• C)Unit cost records are integrated with production accounting records.
• D)Inventory balances are rarely at low levels.

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Definitions:

First-level Manager

A manager who is directly responsible for overseeing the work of entry-level employees, typically the first layer of management in an organization.

Organizing Function

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The process of overseeing and directing the work and performance of others in a professional setting.

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The process of selecting among different strategies or actions by governmental or organizational authorities to address public or organizational issues.