Which of the Following Audit Steps for Observing a Client's

question 42

Multiple Choice

Which of the following audit steps for observing a client's inventory count are to be performed after the physical count is complete?

• A) Obtain the number of the receiving report and shipping document for the last item of the period and check to see that the inventory is properly included or excluded.
• B) Inquire of client's management about whether any inventory owned by others is held on consignment.
• C) Trace items selected and included in audit test recounts into the client's inventory records.
• D) Check for the sequential numbering of tags used in the physical counts, including identification of all used and unused numbers.

Understand the concept of equivalence in logical arguments and how it can be used to infer conclusions.

Identify the use of disjunction in logical arguments and its implications for the conclusion.

Infer the use of conditional statements in constructing logical arguments.

Apply logical reasoning to identify the validity of arguments involving complex compound statements.

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Definitions:

Elastic Demand

A situation where demand for a product or service significantly changes in response to changes in price.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price changes, indicating consumers' strong need or preference for the product.

Sensitive to Price

Sensitive to price describes a situation where demand for a product is highly affected by changes in its price.

Maximize Profit

The primary goal of businesses to achieve the highest possible profit margin by optimizing revenue while minimizing costs.