An Auditor Most Likely Would Make Inquiries of Production and Sales

question 165

Multiple Choice

An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management's financial statement assertion of:

• A) Valuation and allocation.
• B) Rights and obligations.
• C) Existence.
• D) Understandability and classification.

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Definitions:

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, essential for respiration.

Bronchus

One of the two main branches of the trachea that lead directly into the lungs, providing a pathway for air flow.

Enlightened Leadership

Highly effective leadership resulting from viewing human resources as an organization’s greatest asset; treating every individual with dignity, warmth, and support; tapping the constructive power of groups through visioning and team building; and setting high performance goals at every level of the organization.

Organizational Climate

The social and psychological work atmosphere, including reward systems, organizational clarity, standards of performance, warmth and support, and leadership practices; a range of organizational health from exploitation to enlightenment that influences both employee morale and organizational effectiveness.