Audit Procedures Used in the Observation of a Client's Physical

question 24

Multiple Choice

Audit procedures used in the observation of a client's physical inventory count are designed primarily to ________.

• A) test and observe the client's physical count of inventory
• B) independently verify the physical counts recorded by the client
• C) assist the client in taking test counts of year-end inventory
• D) determine whether inventory contains obsolete goods

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Definitions:

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, also known as the "knew-it-all-along" effect.

Psychological Research

The scientific study of the mind and behavior through experiments, observation, and analysis to understand psychological phenomena.

Unpredictable

The quality of being unable to be predicted or foreseen, often leading to uncertainty or surprise.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.