An Auditor Selected an Inventory Item on the Warehouse Floor

question 63

Multiple Choice

An auditor selected an inventory item on the warehouse floor, test counted it, and traced the count to the final inventory compilation. The auditor most likely was testing the PCAOB assertion of

• A)existence.
• B)valuation.
• C)completeness.
• D)rights and obligations.

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Definitions:

Fault Scarps

Steep cliffs or slopes formed by the displacement of the ground surface due to movement along a fault.

Erosion

The process of wearing away rocks and soil by water, wind, or ice, often shaping the Earth's surface.

Deformation

The alteration of the shape or size of rocks and geological structures, often under the influence of tectonic forces.

Metamorphism

The process by which a rock's structure or mineral composition is transformed by heat, pressure, or chemical reactions.