The Auditors Will Usually Trace the Details of the Test

question 45

Multiple Choice

The auditors will usually trace the details of the test counts made during the observation of the physical inventory taking to a final inventory schedule.This audit procedure is undertaken to provide evidence that items physically present and observed by the auditors at the time of the physical inventory count are:

• A)Owned by the client.
• B)Not obsolete.
• C)Physically present at the time of the preparation of the final inventory schedule.
• D)Included in the final inventory schedule.

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Definitions:

Type A

A personality type characterized by high levels of competitiveness, self-driven ambition, impatience, and urgency, often linked to stress and heart disease.

Type B

A personality type characterized by a more relaxed, less time-urgent, and less competitive approach to life compared to Type A.

Adaptive

The process of adjusting to new conditions or environments, often improving fitness or functionality in response.

Stressed

The feeling of being overwhelmed or unable to cope with mental or emotional pressure.