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

question 48

Multiple Choice

An auditor selected items for test counts from the client's warehouse during the physical inventory observation. The auditor then traced these test counts into the detailed inventory listing that ultimately agreed to the financial statements. This procedure most likely provided evidence concerning management's assertion of:

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

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Definitions:

Creditors

Individuals or entities to whom money is owed by debtors; they have a legal right to demand payment according to the terms of the debt agreement.

RUPA

stands for the Revised Uniform Partnership Act, which is a set of laws adopted by states to govern the operation of partnerships.

Dissociated Partner

A partner who has severed their relationship with a partnership, resulting in a change in the business's management or structure.

Transaction

A business deal or action, such as buying, selling, or trading, involving two or more parties exchanging goods, services, or financial assets.