How Does the Auditor Gather Evidence During the Physical Inventory

question 33

Multiple Choice

How does the auditor gather evidence during the physical inventory count?

• A)The auditor determines that the items on hand that are not owned by the client are identified.
• B)The auditor begins the test count process after the client has finished counting the inventory.
• C)Management observes that all inventory has been tagged and counted.The auditor verifies that management has performed this practice.
• D)The auditor observes that client personnel are performing test counts in the areas where they are most familiar with the inventory.

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Definitions:

Central Details

The most important or essential pieces of information within a context or text.

Peripheral Details

Information that is not the central focus but can be found in the margins or periphery, often not the main point of attention.

Memory

The cognitive system that retains information and involves receiving, storing, and retrieving this information.

Schema

A cognitive framework or concept that helps organize and interpret information from the world.