When Evaluating Inventory Controls,an Auditor Would Be Least Likely to

question 91

Multiple Choice

When evaluating inventory controls,an auditor would be least likely to

• A)Inspect documents.
• B)Make inquiries.
• C)Observe procedures.
• D)Consider policy and procedure manuals.

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Definitions:

Merchandise Inventory

The total value of a company's products that are currently unsold, crucial for retail and wholesale businesses.

Operating Cycle

The average period of time required for a business to convert its investments in inventory back into cash through the sale of goods or services.

Merchandise

Products or goods that are bought, sold, or traded within a retail environment.

Long-Term Assets

Assets that a company intends to hold for more than one year, including property, plant, and equipment.