Which of the Following Auditing Procedures Probably Would Provide the Most

question 55

Multiple Choice

Which of the following auditing procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

• A)Trace test counts noted during the entity's physical count to the entity's summarization of quantities.
• B)Inspect agreements to determine whether any inventory is pledged as collateral or subject to any liens.
• C)Select the last few shipping documents used before the physical count and determine whether the shipments were recorded as sales.
• D)Inspect the open purchase order file for significant commitments that should be considered for disclosure.

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Definitions:

Hospitalized Patient

A patient who has been admitted to a hospital for treatment and observation.

Restraint

A measure or device used to limit the movement or activity of a person or part of the body, often for safety or medical reasons.

Intravenous Infusion

The administration of liquid substances directly into a vein for medical treatment or nourishment.

Restraint Supplies

Equipment or devices used to limit the movement of patients for their safety or the safety of others.