When Testing the Existence Assertion for Inventory,the Auditor Would Most

question 60

Multiple Choice

When testing the existence assertion for inventory,the auditor would most likely

• A)observe the client's count of the annual physical inventory and test count.
• B)review vendor invoices for the amounts recorded.
• C)perform year-end tests of invoices received in the final month.
• D)trace raw material purchases to invoices and to the general ledger.

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Definitions:

Tolerance for Ambiguity

The ability to remain comfortable and function effectively in situations that are uncertain, unclear, or unpredictable.

Cross-Cultural Situations

Scenarios that involve interaction between individuals from different cultural backgrounds, requiring sensitivity and understanding.

Implicit Recruitment Policy

An unwritten or unspoken policy guiding the recruitment process, often based on the existing cultural or social norms within an organization.

Supply of Candidates

The availability of individuals qualified or willing to take up specific job roles or positions.