The Audit Team Asks the Client to Pull a Sample

question 26

Multiple Choice

The audit team asks the client to pull a sample of vendor files and examines the invoices supporting the purchases of inventory items during the year.What is the most probable reason for the use of this evidence?

• A)Confirmation of vendors supplying inventory for existence.
• B)Analytical procedures to determine completeness of inventory.
• C)Testing for the valuation of inventory using the FIFO cost flow assumption.
• D)Reading the terms of the arrangements with vendors for disclosure.

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Definitions:

Implementing Decision

The phase of the decision-making process where the chosen course of action is put into action to achieve intended outcomes.

Information

Data that has been processed, organized, or presented in a manner that makes it meaningful and useful to the recipient.

Lack Of Response

A situation where there is no reaction or feedback to a stimulus or action.

Critical Evaluation

The systematic process of assessing the merits, faults, value, or significance of something, based on criteria and reasoned arguments.