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

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Definitions:

No Reaction

A condition where no chemical change occurs between reactants under specified circumstances.

Reaction

A process in which one or more substances are changed into others by reorganization of constituent atoms.

Reaction

A chemical change that occurs when substances combine or decompose forming new compounds.

Boiling Point

The temperature at which a liquid’s vapor pressure equals the external pressure surrounding the liquid, causing it to turn into vapor.