An Auditee May Count the Inventory at a Date Other

question 55

Multiple Choice

An auditee may count the inventory at a date other than the balance sheet date.Which of the following is necessary if the auditor plans to observe the count on a non-balance sheet date?

• A)Complete recounts by independent teams must be performed.
• B)Perform additional roll-forward or roll-back procedures for the period between the count date and balance sheet date.
• C)Unit cost records must be integrated with production accounting records.
• D)Inventory cannot be a material amount.

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Definitions:

Responsibility

The obligation to carry out duties or tasks satisfactorily and being accountable for the outcomes.

Confidentiality

The principle or practice of keeping personal, sensitive, or specified information secure and not disclosing it to unauthorized persons.

Informed Consent

The process by which participants are fully informed about the nature, risks, and benefits of a research study before agreeing to participate.

Nonmaleficence

A principle in ethics, especially medical ethics, that entails not causing harm to others.