Observation of Inventory Counts Is a Required Audit Procedure Whenever

question 14

Multiple Choice

Observation of inventory counts is a required audit procedure whenever:

• A) inventories are material.
• B) it is practicable to do so.
• C) inventories are material and it is practicable to do so.
• D) inventories are material and the auditor considers it to be necessary.

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Definitions:

Pericycle

A layer of cells in plant roots that can give rise to lateral roots and is involved in secondary growth.

Endodermis

The innermost layer of cells in the cortex of a plant root, functioning as a selective barrier that regulates the passage of substances from the soil into the vascular system.

Stele

The central part of a root or stem containing the vascular tissue of xylem and phloem, responsible for the transport of water and nutrients.

Cortex

The outer layer of various organs and structures in the body, such as the brain and adrenal glands, or the primary layer of stems and roots in plants.