Which of the Following Procedures Will Usually Be Performed by the Auditor

question 22

Multiple Choice

Which of the following procedures will usually be performed by the auditor to actively determine obsolete inventory?

• A)Confirmation of inventory with customers.
• B)Footing the inventory subsidiary ledger.
• C)Tracing inventory ordered by the client to receiving reports.
• D)Analysis of inventory turnover and sales reports.

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Definitions:

Capital Acquisitions

The act of obtaining capital assets through purchase, lease, or other means, aimed at increasing the overall value of a business.

Marginal Tax

The tax rate applicable to the last unit of currency earned, indicating the rate at which additional income is taxed.

Tax Rate

The percentage at which income or corporate profits are taxed by the government.

Book Values

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total assets.