Which of the Following Audit Procedures Probably Would Provide the Most

question 38

Multiple Choice

Which of the following audit procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

• A)Trace test counts noted during the physical count of inventory to the summarization of quantities.
• B)Inspect agreements for evidence of inventory held on consignment.
• C)Select the last few shipping advices used before the physical count and determine whether the shipments were recorded as sales.
• D)Inspect the open purchase order file for significant commitments to consider for disclosure.

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Definitions:

Neglected

Refers to something or someone that has not received proper attention or care.

Ainsworth's Phases

A theory proposed by Mary Ainsworth that describes patterns of attachment in children during the Strange Situation Test, highlighting secure, avoidant, and resistant attachment styles.

Preferentially Held

Referring to attitudes, beliefs, or items that are maintained or chosen over others due to personal preference.

Attachment

An emotional bond that forms between individuals, often focusing on the connection between infants and their primary caregivers.