Define and Discuss the Evidence Gathering Technique of Inspection

question 25

Essay

Define and discuss the evidence gathering technique of inspection.

---

Definitions:

LIFO

Last In, First Out is a method for valuing inventory that records the most recently manufactured goods as the first ones sold.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, not continuously, through physical counts.

Ending Inventory Cost

The total value of all goods available for sale at the end of an accounting period, calculated using a specific inventory costing method like FIFO or LIFO.

Physical Inventory

A process of counting and verifying the actual inventory on hand at a specific time, typically used to validate inventory records and adjust discrepancies.