The Audit Strategy That Would Be Most Appropriate When an Auditor

question 12

Multiple Choice

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

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

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Definitions:

Case-control Study

A research study that compares patients who have a disease or outcome of interest (cases) with patients who do not have the disease or outcome (controls), to find associations between the disease and potential risk factors.

Retrospective

An approach in research that looks backwards, analyzing past events or data to identify trends, outcomes, or correlations.

Prospective

refers to looking forward or considering future possibilities and events.

Experimental

Involving a method of learning or discovery that tests a hypothesis through controlled investigation to establish cause-and-effect relationships.