What is the purpose of the auditors in making and recording test counts of inven
ID: 2463180 • Letter: W
Question
What is the purpose of the auditors in making and recording test counts of inventory quantities during their observation of the taking of the physical inventory?
Test counts will be compared to quantities in the completed inventory listing.
Test counts will be used to test the amount of items sold.
Test counts will be used to determine obsolete inventory.
Test counts will be used to test the amount of inventory on consignment.
aTest counts will be compared to quantities in the completed inventory listing.
bTest counts will be used to test the amount of items sold.
cTest counts will be used to determine obsolete inventory.
dTest counts will be used to test the amount of inventory on consignment.
Explanation / Answer
a. Test counts will be compared to quantities in the completed inventory listing, test counts is process of checking the inventory physically ,to know how much of inventory puchased or sold during the year
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