Multiple Choice
Which is the BEST audit procedure for the discovery of damaged merchandise?
A) Review the management's inventory representation letter for accuracy.
B) Be alert for items that are located in inappropriate places while observing the client's physical inventory count.
C) Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.
D) Compare the physical quantities of slow-moving items with corresponding quantities of the prior year.
Correct Answer:
Verified
Correct Answer:
Verified
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