A Company Frequently Sells Products at a Price Below Inventory

question 44

Multiple Choice

A company frequently sells products at a price below inventory cost. Essential controls in the risk assessment process would include:

• A) adequate controls that address the risk of overstating inventory.
• B) adequate controls that address the risk of not including a purchased item in inventory.
• C) adequate controls that address the risk of understatement of inventory.
• D) adequate controls that address the risk of overstatement of cost of goods sold.

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