An Auditor Selected Items for Test Counts from a Client's

question 21

Multiple Choice

An auditor selected items for test counts from a client's inventory listing before observing the client's physical inventory at the warehouse. The auditor then found the items selected at the warehouse and counted them. This procedure most likely obtained evidence concerning management's assertion of:

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

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Definitions:

Monetary Growth

The increase in the money supply in an economy over a period of time, which can affect inflation, interest rates, and economic growth.

Budget Surpluses

Occurs when a government, company, or individual receives more income than it spends over a specified period, leading to excess funds.

Government Spending

The total amount of money spent by the government on various services, including healthcare, education, and defense.

Conventional Monetary Policy

Central bank actions involving the manipulation of interest rates and control of the money supply to influence economic activity.