It Is the Auditor's Job to Review the Client's Estimate

question 79

Multiple Choice

It is the auditor's job to review the client's estimate of obsolete inventory to evaluate whether the ending inventory balance has been determined in accordance with the applicable financial reporting framework.To do this,the auditor considers whether the inventory balance includes

• A)only inventory the client expects to sell in the future
• B)inventory that the client does not own
• C)inventory that has not been paid for at the end of the year
• D)inventory valued at the lower of cost or market
• E)both A and C
• F)both A and D
• G)both D and E

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Definitions:

Nucleus Accumbens

is a region in the brain involved in the reward circuit, associated with pleasure, reinforcement learning, addiction, and fear.

Stability

The state of being resistant to change and maintaining the same conditions over time.

Serotonin

A neurotransmitter involved in many functions, including mood regulation, appetite, and sleep, often associated with feelings of well-being and happiness.

Monoamine Oxidase

An enzyme that breaks down monoamines, including neurotransmitters like dopamine and serotonin, impacting mood and behavior.