The Specific Audit Objective That recorded Purchases Represent Goods, Services

question 45

Multiple Choice

The specific audit objective that recorded purchases represent goods, services, and productive assets received during the period relates to:

• A) rights and obligations.
• B) completeness.
• C) existence or occurrence.
• D) presentation and disclosure.
• E) valuation or allocation.

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Definitions:

Wholly Owned Subsidiaries

Companies that are completely controlled by another company, the parent company, because the parent company owns all of their stock.

MNE

A Multinational Enterprise (MNE) is a company that owns and controls production or service facilities outside of the country in which it is based.

Forms

Documents with blank spaces for the insertion of details or information, often used for official purposes.

Tariffs

Taxes imposed on imported and, less commonly, exported goods with the aim of regulating trade, raising government revenue, or protecting domestic industries.