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:

Memory Decay

The gradual fading of memory traces as a result of the passage of time and lack of use of the encoded information.

Memory Span

The amount of information an individual can retain and recall in short order, typically measured in terms of the number of items, like numbers or words.

Knowledge Base

A knowledge base is a centralized repository of information, including facts, documentation, and data, used to support decision-making, problem-solving, and information retrieval processes.

Memory Capacity

The amount of information that can be held in the memory system at one time, including short-term and long-term storage capabilities.