The inherent risk of material misstatement arising from inventory transactions for a hotel chain or a university is relatively_______.
A) high, because inventory is not a material part of the entity's core process
B) low, because inventory is not a material part of the entity's core process
C) low, because inventory is a material part of the entity's core process
D) high, because inventory is a material part of the entity's core process
Correct Answer:
Verified
Q42: The auditor should be alert to _.
A)incentives
Q43: Many elements of valuing inventory _.
A)should be
Q44: The audit strategy pertaining to inventory is
Q45: Consigned inventory held by the client, _.
A)should
Q46: In tracing beginning inventory balances to prior
Q48: An inventory markdown by a client _.
A)could
Q49: If ending inventory is overstated, _.
A)cost of
Q50: Weak internal control over inventory _.
A)may lead
Q51: Many of the controls over inventory _.
A)overlap
Q52: The value of goods available for sale
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