If a Client Uses the Cycle Method of Counting Inventory

question 6

Essay

If a client uses the cycle method of counting inventory and never takes "wall to wall" inventory on a single date, what must the auditor do in order to avoid requesting the client to take a full inventory count?

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Definitions:

Checkout times

The duration or period it takes for a customer to complete a purchase transaction from start to finish.

Confidence interval

A range of values, derived from sample data, that is believed to contain the true value of a population parameter with a certain probability.

SAT scores

Scores resulting from the Scholastic Assessment Test, a standardized test widely used for college admissions in the United States.