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:

Stratified Sampling

A sampling method that divides the population into smaller groups, or strata, to ensure representation of significant subpopulations in the sample.

School Administrator

An official in an educational setting responsible for the management, coordination, and supervision of school operations and activities.

Freshmen

First-year students at a high school, college, or university.

Population Parameter

A characteristic or measure of an entire population, such as the mean or standard deviation, often estimated using sample data.