An Auditor May Select a Sample of Items from the Inventory

question 56

Multiple Choice

An auditor may select a sample of items from the inventory records and inspect them for consistency with the category of the records. The purpose of this test of controls is to ensure that:

• A) recorded inventory exists.
• B) inventories are physically protected from theft or damage.
• C) policies for assessing inventory valuation are appropriate.
• D) proper procedures are followed for the process of the physical count.

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Definitions:

Civil Rights Movement

The struggle for social justice in the 1950s and 1960s in the United States, primarily aiming to end racial discrimination and gain equal rights under the law for African Americans.

African-American Community

A group of people in the United States with African heritage, with a distinct culture shaped by historical experiences including slavery and civil rights struggles.

Activists

Individuals who actively promote, impede, or direct social, political, economic, or environmental change and reform.

Johnson Administration

The executive period of Lyndon B. Johnson, the 36th president of the United States, from 1963 to 1969, known for his Great Society programs.