For the Purpose of Determining Proper Cutoff for Inventory, the Auditor

question 58

Multiple Choice

For the purpose of determining proper cutoff for inventory, the auditor will select a sample from which of the following for a few days before and after year-end?

• A)Materials requisitions.
• B)Production schedules.
• C)Receiving documents.
• D)Purchase orders.

---

Definitions:

Diffusion of Responsibility

A psychological phenomenon where individuals feel a diminished sense of personal responsibility in the presence of others.

Belief in a Just World

The cognitive bias that assumes people get what they deserve, leading to rationalizing suffering and rewarding.

Good Samaritan Effect

The phenomenon where people are more likely to offer help to others in need without expecting anything in return.

Commons Dilemma

A situation in shared-resource systems where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource.