The Most Reliable Procedure for an Auditor to Use to Test

question 51

Multiple Choice

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to:

• A)Observe physical counts of the inventory items.
• B)Trace the total on the inventory listing to the general ledger inventory account.
• C)Obtain a confirmation from the client indicating inventory ownership.
• D)Analytically compare the current-year inventory balance to the prior-year balance.

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Definitions:

Phallic Stage

A phase in Freudian psychosexual development, occurring from about ages 3 to 6, where the child's libido centers upon their genitalia as the erogenous zone.

Psychodynamic Perspectives

A theory in psychology that emphasizes systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experiences.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and psychological identity.

Developmentally

Pertaining to the process of growth and change over the lifespan, including physical, cognitive, emotional, and social development.