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:

Cisgender

A term for individuals whose gender identity matches the sex they were assigned at birth.

Homosexual

A term describing individuals who are sexually attracted to members of their own sex.

Transsexual

A term used to describe an individual whose gender identity differs from the sex they were assigned at birth, and who may seek to transition physically to the gender with which they identify.

Crying

The shedding of tears in response to an emotional state, physical irritation, or a reflex action.