Which of the Following Is the Best Audit Procedure for the Discovery

question 27

Multiple Choice

Which of the following is the best audit procedure for the discovery of damaged merchandise in a client's ending inventory?

• A) Compare the physical quantities of slow-moving items with corresponding quantities of the prior year.
• B) Observe the condition of merchandise and raw materials during the client's physical inventory count.
• C) Review the management's inventory representation letter for accuracy.
• D) Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.

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An official document compiled by the Federal Bureau of Investigation detailing investigations, findings, or statistics.

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A learned drive that is not directly related to biological needs but is derived from them, such as the drive for money or social acceptance.