Question: For clients that carry inventory, auditors can look at inventory trends for any values that are concerning. It helps the auditors to understand what is

For clients that carry inventory, auditors can look at inventory trends for any values that are concerning. It helps the auditors to understand what is happening with inventory levels to provide evidence for all assertions. Examine the visualization titled “Count per Quarter” and answer the questions below.

Count per Quarter 3D04-58YK-LWCQ-6DWZ Measure Names Quantity (Prior year) Quantity Quantity (Quarter 2) Quantity (Quarter 3)

Which pattern, of the first four inventory items, is the most concerning to an auditor and why?

A. The first one, because inventory is declining.

B. The second one, because inventory is increasing.

C. The third one, because fourth quarter inventory is so much different from the other quarters and the average.

D. The fourth one, because it is below average and then above.

Measure Names Count per Quarter Quantity (Prior year) Quantity Quantity (Quarter 2) Quantity (Quarter 3) I Quantity (Quarter 4) Item No 3DQ4-58YK-LWCO-6DWZ 3E72-5YHL-P3AY-B759 3RDJ-W3HX-4NJ4-9N2V 3RTW-LHV6-3XVC-HW7K 4AP4-RWFH-BFAV-EELP 4U68-NRMK-NJKB-59QV 5M5S-ZANV-RXGY-DJU3 7GNF-LHTY-RUVU-VQQK 8N 280 260 240 Average 220 Average 200 Average 180 160 Average 140 120 100 80 Average Average Average 60 40 Average 20 Au Value

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