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:

Value Chain Analysis

A strategic analysis tool used to identify the primary and support activities of a business that create value for the customer, to enhance competitive advantage.

Core Processes

are the essential and fundamental activities carried out by an organization that directly contribute to its main objectives and mission.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.

Customer Satisfaction

The degree to which a product or service meets or exceeds the customer's expectations.