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While observing a client's annual physical inventory, an auditor recorded test counts for several items and noticed that certain test counts were higher than the recorded quantities in the client's perpetual records.
This situation could be the result of the client's failure to record:
Suggested Answer: A
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Choice 'a' is correct. In microcomputer audit applications, efficient and effective system usage requires:
(1) identification of the appropriate audit tasks and
(2) appropriate software to perform the selected audit tasks.
Choice 'b' is incorrect. Although microcomputer access to client data is desirable, it is not required.
Choice 'c' is incorrect. Although microcomputer access to client data is desirable, it is not required. Also, microcomputer audit applications need not be applicable to several clients to be efficient and effective.
Choice 'd' is incorrect. Microcomputer audit applications need not be applicable to several clients to be efficient and effective.
40 comments · newest first
SA
Sabina
10 months ago
Not so sure about that, could also be sales discrepancies.
LI
Linwood
11 months ago
Agree, purchase returns make the most sense here.
AS
Asuncion
11 months ago
Wait, how can test counts be higher? That seems off.
EV
Evangelina
11 months ago
I think it's more likely related to sales returns.
TI
Tiera
11 months ago
This could definitely be due to unrecorded purchase returns.
MA
Mauricio
12 months ago
I’m a bit confused about this one. I thought sales returns would decrease inventory, not increase it. So, I’m not sure if D is relevant here.
IL
Ilene
12 months ago
This reminds me of a practice question where we had to identify discrepancies in inventory. I think purchase discounts could be a factor too, but I'm leaning towards purchase returns.
BE
Benton
12 months ago
I'm not entirely sure, but I feel like sales could also impact inventory counts. If sales aren't recorded, it might show higher inventory levels.
AR
Argelia
1 year ago
I remember discussing how unrecorded purchase returns could lead to inflated inventory counts. So, I think option B might be the right answer.
LO
Lorrine
1 year ago
I'm feeling a little confused here. Is this about inventory valuation or just inventory record-keeping? I want to make sure I'm approaching this from the right angle. Maybe I should re-read the question a few times to make sure I'm not missing anything.
TO
Tomoko
1 year ago
Okay, I've got this. The key is to identify what the client failed to record, which would lead to the test counts being higher than the perpetual records. Based on the options, I think the answer is sales returns.
LE
Leana
1 year ago
This seems like a straightforward inventory question. I'll carefully review the details and think through the possible reasons for the discrepancy between the test counts and the perpetual records.
LA
Laura
1 year ago
Hmm, I'm a bit unsure about this one. I need to make sure I understand the difference between purchase discounts, purchase returns, sales, and sales returns. Let me re-read the question and options carefully.
RA
Ranee
1 year ago
I'm pretty confident that the answer is option B. The output shows that Shadow Clones are currently disabled, so the administrator needs to use the acluster edit-params command to enable them.
JE
Jeannetta
1 year ago
Hmm, I'm not sure about this one. I know a /31 subnet is a bit unusual, but I can't quite remember all the details. I'll have to think it through carefully.
TU
Tula
1 year ago
This is a tricky one. I'll need to think through how adding new requirements halfway through would impact the project triangle.
MA
Matilda
1 year ago
I feel like Sysinternals Autoruns was mentioned in a similar context, but I can't recall if it's the right tool for this question.
MA
Mari
1 year ago
This seems like a tricky one. I'll need to think through the different options carefully.
RO
Rolland
1 year ago
Option D, sales returns, is the correct answer. The question is pretty straightforward, and the wording points us in that direction. Gotta love those inventory audits, am I right?
BE
Bettye
1 year ago
It's important for auditors to pay close attention to these details during inventory audits.
BE
Bettye
1 year ago
Definitely, sales returns can cause discrepancies in inventory counts.
BE
Bettye
1 year ago
D) Sales returns.
LE
Leonardo
1 year ago
Haha, I bet the client's accountant was like, 'Wait, where did all these extra items come from?' Option D is the clear winner here.
BR
Brianne
1 year ago
It's important for the client to accurately record all transactions to avoid these kinds of issues.
CR
Craig
1 year ago
Yeah, that would explain the discrepancy between the test counts and the perpetual records.
AS
Ashanti
1 year ago
I agree, option D makes the most sense. The client probably forgot to record the sales returns.
FR
Freeman
1 year ago
I'm going with option D. Sales returns. It's the only one that makes sense in the context of the question. The other options just don't seem relevant to the situation at hand.
HE
Herminia
1 year ago
I'm sticking with sales returns. It just seems like the most logical explanation for the discrepancy.
CA
Cathern
1 year ago
I see your point, but I still think it's purchase returns. It seems more likely in this scenario.
RY
Ryan
1 year ago
I disagree, I believe it's sales returns. That would explain the higher test counts.
RE
Remona
1 year ago
I'm not sure about purchase returns. I think it might be sales returns because that would also result in higher test counts than recorded quantities.
RE
Ressie
1 year ago
I agree with you, purchase returns could definitely be a possibility. It would explain the discrepancies in the test counts.
JE
Jerlene
1 year ago
I think it could be purchase returns. Maybe the client forgot to update the records when items were returned.
DI
Dick
1 year ago
I think it could be purchase returns. Those could have been missed in the perpetual records.
FL
Flo
1 year ago
Hmm, the client's failure to record sales returns seems like the most logical explanation here. That would definitely result in the test counts being higher than the perpetual records.
TA
Tammara
1 year ago
It's important for the client to accurately record all transactions to ensure the accuracy of their financial statements.
CA
Candida
1 year ago
I agree, not recording sales returns would definitely cause discrepancies in the inventory counts.
PE
Peggie
2 years ago
I disagree. I think the answer is D) Sales returns. Maybe the client didn't properly record the returns from sales transactions.
GI
Gilma
2 years ago
I agree with Shizue. If the test counts were higher than recorded quantities, it could be due to missing purchase returns.
SH
Shizue
2 years ago
I think the answer is B) Purchase returns.