Which of the Following Is the Best Audit Procedure for the Discovery

question 12

Multiple Choice

Which of the following is the best audit procedure for the discovery of damaged merchandise in an entity's ending inventory?

• A)Compare the physical quantities of slow-moving items with corresponding quantities of the prior year.
• B)Observe the condition of merchandise and raw materials during the entity's physical inventory count.
• C)Review the management's inventory representation letter for accuracy.
• D)Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.

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Definitions:

Career Objective

A statement on a résumé outlining the applicant's goals and how they aim to contribute to the prospective employer, reflecting both short-term and long-term career aspirations.

Planning

The process of making detailed decisions about what is going to be done in the future, based on goals and strategies.

Writing

The process or activity of producing text for various purposes, such as communication, storytelling, or documentation.

Completing

The act of finishing a task or project.