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:

Monopoly Power

The ability of a single supplier to control the market price and supply of a product or service.

Brand Loyalty

A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.