Audit Procedures to Test Internal Controls Are

question 46

Multiple Choice

Audit procedures to test internal controls are

• A)inquiries of management
• B)inspection of relevant documentation
• C)observation of the generalization of the control
• D)re-certification of the control
• E)re-calculation of amounts

Fix misstated net income due to inventory count errors and analyze impact on financial statements.

Identify and calculate key inventory ratios and their significance in evaluating a company's performance.

Analyze the effects of inventory valuation errors on gross profit and prepare corrected income statements.

Apply inventory valuation methods to estimate the cost of ending inventory using the retail inventory method.

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Definitions:

Referent Power

A form of influence based on the attractiveness and charisma of the leader, which inspires loyalty and admiration.

Expert Power

The ability to influence others based on recognized knowledge, skills, or expertise.

Legitimate Power

Power that is recognized as rightful or official within a particular social or organizational framework.

Political Behavior

Actions not officially sanctioned by an organization that are taken to influence others in order to meet one’s personal goals.