To Ensure That a Client's Raw Materials, Work-In-Process, and Finished

question 27

Multiple Choice

To ensure that a client's raw materials, work-in-process, and finished goods inventories are physically protected from theft or damage, an auditor could perform a test of controls such as:

• A) selecting a sample of inventory items from the inventory records and inspecting them for consistency with the category of records.
• B) reviewing the company's inventory policies for adherence to GAAP.
• C) observing the client's physical inventory count to assess whether the company's procedures are being followed.
• D) touring the storage and production facilities and observe the security procedures in place.

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Definitions:

Poorly Performing

Describing something that fails to achieve expected standards or results in a given task or area.

Reggio Emilia

An educational philosophy focused on preschool and primary education, emphasizing hands-on discovery learning that allows children to use all their senses and languages to learn.

Group

A number of individuals who are connected to each other by social relationships.

Adherence

The act of following closely or exactly to a set of rules, beliefs, or a prescribed course of treatment.