An Auditor Who Wished to Test for the Existence or Occurrence

question 43

Multiple Choice

An auditor who wished to test for the existence or occurrence of inventory would most likely select a sample of inventory items from the perpetual records and

• A)trace additions to the general ledger.
• B)vouch additions to receiving reports.
• C)vouch additions to sales invoices.
• D)trace receipts to receiving reports.

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Definitions:

Christopher Columbus

An Italian explorer sponsored by Spain, whose 1492 voyage across the Atlantic Ocean led to the widespread awareness of the Americas in the Old World.

Ferdinand

Refers to various historical figures, the most renowned being Ferdinand II of Aragon, who, alongside Queen Isabella of Castile, financed Christopher Columbus's 1492 voyage, leading to the European discovery of the New World.

Selling

The process of transferring goods or services from one party to another in exchange for money or other compensation.

Treaty of Tordesillas

An agreement in 1494 between Portugal and Spain, dividing the newly discovered lands outside Europe between them along a meridian 370 leagues west of the Cape Verde islands.