Which One of the Following Procedures Would Not Be Appropriate

question 60

Multiple Choice

Which one of the following procedures would not be appropriate for an auditor in discharging his or her responsibilities concerning the entity's physical inventories?

• A)Confirmation of goods in the hands of public warehouses.
• B)Supervising the annual physical inventory count.
• C)Carrying out physical inventory procedures at an interim date.
• D)Obtaining written representation from the entity as to the existence, quality, and dollar amount of the inventory.

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Definitions:

Fixed Exchange-rate System

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold.

Central Bank

An institution that manages a country’s currency, money supply, and interest rates, often overseeing the commercial banking system of their country or monetary union.

Foreign-exchange Reserves

Assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.