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:

Cognition-focused Theorists

Researchers or theorists who concentrate on understanding how mental processes like perception, memory, and problem-solving work.

Cognitive Model

A framework in psychology that describes how thoughts, feelings, and behaviors interact and influence each other.

Physical Processes

Physical processes refer to the natural phenomena and mechanisms by which physical changes occur in the universe, including in living organisms.

Cognitive-behavioral Model

A systematic technique in counseling intended to address negative emotions, behaviors, and beliefs through a goal-specific, orderly approach.