What kind of information is being provided by the lack of any significant differences between perpetual levels and actual levels?

You are working in an enterprise. Assuming that your enterprise periodically compares finished
goods inventory levels to the perpetual inventories in its ERP system. What kind of information is
being provided by the lack of any significant differences between perpetual levels and actual
levels?

A.
Direct information

B.
Indirect information

C.
Risk management plan

D.
Risk audit information

Explanation:

The lack of any significant differences between perpetual levels and actual levels provides indirect
information that its billing controls are operating. It does not provide any direct information.
Answer A is incorrect. It does not provide direct information as there is no information about the
propriety of cutoff.