For Which of the Following Circumstances Would It Be Appropriate

question 46

Multiple Choice

For which of the following circumstances would it be appropriate for an auditor to examine the inventory records for evidence of adjustment based on results of the physical count?

• A) To ensure that the process for the physical count of inventory includes proper procedures.
• B) To ensure that the correct result of the physical count, in conjunction with cost information, is used to update the accounting records.
• C) To ensure that the policies for assessing inventory valuation are appropriate.
• D) To ensure that the inventory records are updated for physical movement of items within the production process.

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Definitions:

Tristearin

A triglyceride derived from glycerol and three units of stearic acid, commonly found in fat and oils.

Triolein

A triglyceride derived from glycerol and three oleic acid molecules, predominantly found in vegetable oils.

Transition Metal Catalyst

A catalyst that involves the use of a transition metal, which speeds up chemical reactions without being consumed.

Hydrogen

The lightest and most abundant chemical element in the Universe, consisting of just one proton and one electron.