The Audit of Year-End Physical Inventories Should Include Steps to Verify

question 59

Multiple Choice

The audit of year-end physical inventories should include steps to verify that the entity's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a:

• A)sale in the subsequent period.
• B)purchase in the current period.
• C)sale in the current period.
• D)purchase return in the subsequent period.

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Definitions:

Keratosis

A general term for any skin condition characterized by an overgrowth of keratin, leading to rough, scaly patches.

Fissure

A long, narrow, and deep crack or opening often found in the anatomy of the body, such as the skin or the folds of the brain, that can indicate disease or a division between anatomical structures.

Seborrheic Keratoses

Benign skin growths that appear as brown, black, or light tan spots or patches on the skin, often associated with aging.

Senile Lentigines

Also known as age spots or liver spots, they are benign pigmented flat lesions on the skin occurring in older individuals.