Which of the Following Would the Auditor Most Likely Do

question 32

Multiple Choice

Which of the following would the auditor most likely do when testing the valuation assertion for inventory?

• A)Confirm inventory on consignment.
• B)Examine receiving reports for inventory,tracing the recorded amounts.
• C)Observe the taking of physical inventory.
• D)Vouch inventory purchases to vendor invoices.

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Definitions:

Formal Operational Thought

A stage of cognitive development, as identified by Jean Piaget, where individuals (around age 12 and older) become capable of abstract thinking, logical reasoning, and complex problem solving.

Oceans Dried Up

A hypothetical scenario where the world's oceans completely lose their water content, leading to catastrophic environmental consequences.

Symbolic Thought

The ability to use symbols, signs, or objects to represent something else, marking a key aspect of human language and cognitive development.

Concrete Operational Thought

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events and understand the concept of conservation.