Audit Procedures Used in the Observation of a Client's Physical

question 24

Multiple Choice

Audit procedures used in the observation of a client's physical inventory count are designed primarily to ________.

• A) test and observe the client's physical count of inventory
• B) independently verify the physical counts recorded by the client
• C) assist the client in taking test counts of year-end inventory
• D) determine whether inventory contains obsolete goods

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Definitions:

Harm

Physical injury, damage, or negative impact caused to a person, property, or other entity.

Use

Refers to the manner or purpose for which something is put into action or service.

Consumption

The use of goods and services by households or individuals.

Unreasonably Dangerous Product

In product liability, a product that is defective to the point of threatening a consumer’s health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.