In an Audit of Inventories, an Auditor Would Least Likely

question 38

Multiple Choice

In an audit of inventories, an auditor would least likely verify that:

• A)all inventory owned by the entity is on hand at the time of the count.
• B)the entity has used proper inventory pricing.
• C)the financial statement presentation of inventories is appropriate.
• D)damaged goods and obsolete items have been properly accounted for.

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Definitions:

Calotype

From the Greek kalos, “beautiful.” A photographic process in which a positive image is made by shining light through a negative image onto a sheet of sensitized paper.

Camera Obscura

An ancient optical device that projects an image of its surroundings on a screen; used in drawing and for entertainment, and a precursor to modern photography.

Approximate Height

A measurement that provides an educated guess or estimation of an object or person's height, not necessarily based on precise measurements.

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures a company’s production efficiency.