Which of These Procedures Would Not Be Appropriate for an Auditor

question 71

Multiple Choice

Which of these procedures would not be appropriate for an auditor in discharging his or her responsibilities concerning the entity's physical inventories, assuming that the inventory is held at one location?

• A) obtaining written representation from the entity as to the existence, quality, and dollar amount of the inventory
• B) relying on the internal auditor to observe the total inventory count
• C) confirming the goods in the hands of public warehouses
• D) none of the procedures would be appropriate

---

Definitions:

Legislative Regulations

are rules made by a government or regulatory body that have the force of law.

Progressive Rate Structure

A tax system where the tax rate increases as the taxable amount increases, resulting in those with higher incomes paying a higher rate of tax on their income.

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities, based on their income levels.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.