Benchmarking Is an Audit Strategy That Can Be Used to Carry

question 14

True/False

Benchmarking is an audit strategy that can be used to carry forward the benefit of certain application controls testing into future audit periods.

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Definitions:

Merchandise Inventory

Goods available for sale, valued at the lower of cost or market price, on a company's balance sheet.

Estimated Cost

A projection or approximation of the cost associated with manufacturing a product or completing a project.

Net Realizable Value

The estimated selling price of goods minus any costs associated with their sale or disposal.

Merchandise

Goods that are bought and sold in the course of business, often referred to in the context of retail or wholesale trading.