For Internal Controls Testing

question 94

Multiple Choice

For internal controls testing,

• A)the sample size is usually larger than for substantive testing
• B)the size of the population usually has no effect on the sample size
• C)the sample size is usually smaller than for substantive testing
• D)as the size of the population increases,the sample size increases

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Definitions:

Sold Units

The number of units of a product or goods that have been sold during a specific period.

FIFO Perpetual

An inventory valuation method where the first goods purchased are the first ones sold, continuously updated for each sale and purchase.

Inventory Records

Documentation that details the quantity, type, and value of a company's inventory at a particular time.

Inventory Value

The total cost associated with the goods a company intends to sell, calculated at either the cost to produce/buy them or their current market value.