To Gain Assurance That All Inventory Items in an Entity's

question 2

Multiple Choice

To gain assurance that all inventory items in an entity's inventory listing schedule are valid, an auditor most likely would trace

• A) Inventory tags noted during the auditor's observation to items listed in the inventory listing schedule.
• B) Inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices.
• C) Items listed in the inventory listing schedule to inventory tags and the count sheets.
• D) Items listed in receiving reports and vendors' invoices to the inventory listing schedule.

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Definitions:

Work Settings

Refer to the physical and social environments in which individuals perform their job duties.

Observable Behavior

Behavior that can be seen or measured, often used in psychological studies or workplace assessments to determine how individuals act in certain situations.

Permanent Change

A change that is intended to be lasting and not reversible, affecting an organization or system indefinitely.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with a certain response through conditioning.