In the Inventory Process,the Auditor Might Perform the Following Analytical

question 77

Multiple Choice

In the inventory process,the auditor might perform the following analytical procedures

• A)Compare inventory balances by category - raw material,work-in-process,and finished goods - for the current year with the prior year.
• B)Compare inventory purchases by category - raw material,work-in-process,and finished goods - for the current year with the prior year.
• C)Compute material margin with the current year with the prior year.Investigate any unexpected changes in the ratio.
• D)Compute cost of goods sold with the current year with the prior year.Investigate any unexpected changes in the ratio.
• E)Compute inventory turnover.Compare the current year's turnover to the prior year.Investigate any differences.
• F)both A and C
• G)both B and D
• H)Both A and E

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Definitions:

Home Country Laws

The regulations and legal framework that govern the operations of businesses and individuals within a country's borders.

Sweatshops

Businesses that employ workers at very low wages for long hours in poor working conditions.

Executives

Senior-level employees responsible for making decisions and managing the operations within an organization.

Transnationals

Companies that operate on a global scale, transcending national boundaries in their business operations and strategic planning.