To gain assurance that all inventory items in an entity's inventory listing schedule are valid, an auditor most likely would trace:
A. inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices.
B. items listed in the inventory listing schedule to inventory tags and the count sheets.
C. inventory tags noted during the auditor's observation to items listed in the inventory listing schedule.
D. items listed in receiving reports and vendors' invoices to the inventory listing schedule.
Answer: B
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The variance of a sample of 100 observations equals 64. The standard deviation of the sample equals
A. 8. B. 10. C. 4096. D. 10,000.
CVP analysis can also be applied by a company selling multiple products
Indicate whether the statement is true or false
KLM Corporation's quick assets are $6,095,000, its current assets are $13,245,000 and its current liabilities are $8,127,000. Its acid-test ratio equals:
A. 0.61. B. 1.33. C. 0.46. D. 2.38. E. 0.75.
Which of the following is not considered an opinion unit requiring a materiality determination associated with a financial statement audit of a state or local government?
A. Investment trust fund financial statements. B. Business-type activities. C. Each major governmental fund. D. Aggregate discretely presented component units.