In Auditing a Manufacturing Entity, Which of the Following Procedures

question 32

Multiple Choice

In auditing a manufacturing entity, which of the following procedures would an auditor least likely perform to determine whether slow-moving, defective, and obsolete items included in inventory are properly identified?

• A) Test the computation of standard overhead rates.
• B) Tour the manufacturing plant or production facility.
• C) Compare inventory balances to anticipated sales volume.
• D) Review inventory experience and trends.

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Definitions:

Territoriality

A behavioral pattern among animals and humans involving the establishment and defense of a territory for living, feeding, or breeding.

Clumped Dispersion

A pattern of population distribution where individuals are grouped in patches, often found in nature due to environmental or social factors.

Exponential Growth

A population growth pattern where the size of the population increases at a rate proportional to its current size, leading to faster growth as the population gets larger.

Carrying Capacity

The maximum population size of a biological species that an environment can sustain indefinitely.