To Gain Assurance That All Inventory Items in a Client's

question 9

Multiple Choice

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

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

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Definitions:

Scientific Method

A systematic process of questioning, data collection, analysis, and hypothesis testing used to explore observations and answer questions.

Economic Model

A theoretical construct that represents economic processes by a set of variables and a set of logical or quantitative relationships between them.

Economic Conditions

The state of various factors that influence an economy at a given time, including inflation rates, unemployment levels, and the rate of economic growth.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another, holding all other relevant factors constant.