Which of the Following Is the Best Audit Procedure for the Discovery

question 6

Multiple Choice

Which of the following is the best audit procedure for the discovery of damaged merchandise in a client's ending inventory?

• A) Compare the physical quantities of slow-moving items with corresponding quantities of the prior year.
• B) Observe merchandise and raw materials during the client's physical inventory count.
• C) Review the management's inventory representation letter for accuracy.
• D) Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.

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Definitions:

Mental Health

Refers to cognitive, behavioral, and emotional well-being; it is all about how people think, feel, and behave.

Elder Maltreatment

The abuse, neglect, or exploitation of older adults, typically those who are vulnerable due to age, health condition, or dependency on others.

Prevented

Stopped from happening or avoided through proactive measures.

Personality

Refers to the combination of characteristics or qualities that form an individual's distinctive character.