When a Physical Count of Inventory Is Performed at an Interim

question 70

Multiple Choice

When a physical count of inventory is performed at an interim date, the auditor observes it at that time and tests the perpetual records for transactions

• A) throughout the year.
• B) which are a representative sample of the period under audit.
• C) from the date of the count to year-end.
• D) from the date of the count to the end of the audit field work.

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Definitions:

Normally Distributed Populations

Populations that follow a normal distribution, characterized by a bell-shaped curve.

Z-Test Approximation

A statistical test used to determine if there are significant differences between means with known variance and a large sample size.

Two Independent Samples

A statistical method involving the comparison of two groups of data where the samples are collected independently of one another.

Larger Than 10

A description or condition referring to quantities or values that exceed the number 10.