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:

UPPER

A function typically used in programming and spreadsheet applications to convert text data into uppercase letters.

LOWER

In the context of text manipulation, a function or method used to convert all characters in a string to lowercase.

Summarize

To condense or provide an overview of the main points of a larger set of information without going into detail.

Worksheets

Individual pages within an Excel file where users can store and manipulate data in rows and columns.