An Auditor Is Most Likely to Review an Entity's Practice

question 3

Multiple Choice

An auditor is most likely to review an entity's practice of periodically accounting for the numerical sequence of shipping documents and invoices as evidence and support for management's financial statement assertion of

• A)Existence or occurrence.
• B)Rights and obligations.
• C)Valuation or allocation.
• D)Completeness.

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Definitions:

Obligor

One who owes an obligation to another.

Notice of Assignment

A formal notification given to all the relevant parties involved that a contract has been transferred from one party (the assignor) to another (the assignee).

Discharge Obligation

The act of fulfilling or settling a responsibility, duty, or debt.

Duty Delegated

The assignment of responsibilities or tasks by someone in authority to another person or entity.