While Observing an Entity's Annual Physical Inventory, an Auditor Recorded

question 49

Multiple Choice

While observing an entity's annual physical inventory, an auditor recorded test counts for several items and noticed that certain test counts were higher than the recorded quantities in the entity's perpetual records. This situation could be the result of the entity's failure to record

• A) Purchase discounts.
• B) Purchase returns.
• C) Sales.
• D) Sales returns.

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Definitions:

Physical Harm

Injury or damage inflicted on a person's body, potentially resulting in pain or impairment.

Gate-Control Theory

A theory suggesting that the spinal cord contains a neurological "gate" that either blocks or allows pain signals to continue on to the brain.

Texture Gradients

A visual cue that artists and designers use to portray depth by gradually changing the texture's density or clarity.

Motion Parallax

A depth cue in which objects closer to the observer move faster across the field of view than objects further away, providing information about relative distances.