When Auditing Merchandise Inventory at Year-End,the Auditor Performs a Purchase

question 11

Multiple Choice

When auditing merchandise inventory at year-end,the auditor performs a purchase cutoff test to obtain evidence that ________.

• A)all goods purchased before year-end are received before the physical inventory count
• B)goods held on consignment for customers are not included in the inventory balance
• C)the stock of inventory on hand at year-end is neither pledged nor sold
• D)all goods owned at year-end are included in the inventory balance

---

Definitions:

Engaged Worker

An employee who is fully absorbed by and enthusiastic about their work, thereby taking positive actions to further the organization's reputation and interests.

Synergy

A product of group effort whereby the output of the group exceeds the output possible if the members worked alone.

Hotdog Eating Contests

Competitive eating events where participants race to eat as many hotdogs as possible within a given time limit.

Learning-Goal Orientation

A mindset focused on developing new skills, knowledge, and competencies, rather than merely demonstrating proficiency.