The Audit Strategy That Would Be the Most Appropriate When

question 39

Multiple Choice

The audit strategy that would be the most appropriate when an auditor has assessed a predominantly substantive approach is to determine inventory quantity is by

• A) physical count at or within a few days of balance date.
• B) physical count near balance date, adjusted by reference to perpetual records.
• C) reference to perpetual records, without a physical count at or near balance date.
• D) none of the above

---

Definitions:

Latch Instruction

One-half of an instruction pair (the second instruction of the pair being the unlatch instruction) that emulates the latching action of a latching relay. The latch instruction for a programmable logic controller energizes a specified output point or internal coil until it is de-energized by a corresponding unlatch instruction.

MCR Zone

In programmable logic controllers (PLCs), a Master Control Relay zone, which refers to a section of the program controlled by a master relay for safety or operational purposes.

Subroutine

A set of instructions designed to perform a frequently used operation within a program.