For Each of the Following, State Whether It Is a Test

question 34

Essay

For each of the following, state whether it is a test of details of account balances or a test of details of disclosures. Then note for which assertion the test provides evidence.
1. Inspect loan agreements under which an entity's inventories are pledged.
2. Review inventory compilation for proper classification among raw materials, work in process, and finished goods.
3. Observe the count of physical inventory.
4. Trace test counts and tag control information to the inventory compilation.
5. Inquire of management about issues related to LIFO liquidations.
6. Review book-to-physical adjustments for possible misstatements.

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Definitions:

Unlearned Reaction

An instinctual or reflexive response that occurs without prior learning or experience, typically innate and common in human and animal behavior.

Previous Conditioning

The learning or training that an individual has received in the past, which influences their current behavior or reactions.

Evaluative Conditioning

A process where the qualities of one stimulus become attributed to another through association.

Classical Conditioning

An educational process where two stimuli are consistently paired together, resulting in a response initially triggered by the second stimulus ultimately being triggered by just the first stimulus.