Which of the following is least likely to be an accurate statement concerning characteristics of an audit?

Question

Quizplus · Accepted Answer

The statement in option A is actually an accurate statement about characteristics of an audit. An audit often involves analyzing inventory turnover to assess the accuracy of inventory valuation methods used by a company, so option A is unlikely to be the least accurate statement. Option B is accurate as well because double entry bookkeeping enables auditors to identify errors or anomalies in sales data by cross-checking sales records with corresponding records in accounts receivable. Option C is generally true, as auditors typically move from account balances to underlying source documents when looking for potential errors or fraud. Option D is also accurate, since the choice of inventory system can significantly impact the way that cutoff errors are identified or prevented during an audit.

Which of the Following Is Least Likely to Be an Accurate