Which of the following inventory frauds is not identified by Practice Alert No.94-2: Auditing Inventories--Physical Observations.
A)double-counting inventory
B)counting obsolete inventory
C)including inventory for which the corresponding payable has not been recorded
D)employee theft of inventory item having high sales volume

Question

Quizplus · Accepted Answer

Practice Alert No.94-2 identifies three common inventory frauds, including double-counting inventory, counting obsolete inventory, and including inventory for which the corresponding payable has not been recorded. It does not specifically address employee theft of inventory item having high sales volume.

Which of the Following Inventory Frauds Is Not Identified by Practice