A Risk to the Auditor Due to the Complexity of Physical

question 41

Multiple Choice

A risk to the auditor due to the complexity of physical inventory includes possible

• A)overstatement of individual items across multiple locations for cutoff testing.
• B)utility of the items exceeding their cost for existence testing.
• C)movement of goods during existence testing.
• D)stocking of only one type of inventory in the warehouse for presentation and disclosure testing.

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Definitions:

Current Trend

The general direction in which something is developing or changing.

Well-Years

A measure of population health quantifying the equivalent number of years of healthy life obtained through interventions or medications.

United States

is a country in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Living Years

Refers to the period or duration of time an individual is alive, emphasizing the quality and healthfulness of those years.