Not Many Companies Take a Physical Count of Inventory Each

question 31

True/False

Not many companies take a physical count of inventory each year as they rely primarily on inventory records alone to determine the inventory value.

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Definitions:

Discrepancies

Differences or inconsistencies found when comparing two sets of data or reports, often requiring further investigation.

External Auditors

Independent auditors who examine the financial statements of an entity to ensure accuracy and compliance with applicable standards.

Internal Controls

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Independent

Free from external control or influence; not connected or dependent on something else.