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Which of the Following Audit Procedures Most Likely Would Provide

Question 1

Multiple Choice

Which of the following audit procedures most likely would provide assurance that a manufacturing entity's inventory valuation is proper?


A) Testing the entity's computation of standard overhead rates.
B) Obtaining confirmation of inventories pledged under loan agreements.
C) Reviewing a cutoff procedure for inventories.
D) Tracing test counts to the entity's inventory listing.

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