Which of the Following Is Least Likely to Be an Accurate

question 40

Multiple Choice

Which of the following is least likely to be an accurate statement concerning characteristics of an audit?

• A) An analysis of inventory turnover addresses whether the proper method of determining inventory costs-as contrasted to market values-is being applied.
• B) Characteristics of the double entry bookkeeping system make it possible to test for overstated sales when tests of accounts receivable are being performed.
• C) The direction of tests for overstatement errors is generally directed from the recorded entry to source documents.
• D) Use of a perpetual rather than a periodic inventory system is likely to affect the nature of cutoff errors made at year-end.

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Definitions:

Responsibility For Productivity

Refers to the obligation or duty of individuals or organizations to complete tasks efficiently and effectively.

Listening Process

The act of receiving, understanding, recalling, evaluating, and responding to verbal and non-verbal messages.

Interpreting

The process of explaining or providing the meaning of something, often involving the translation of languages or elucidation of data.

Remembering

The cognitive process of recalling information that has been learned or experienced.