An Auditor Selected Items for Test Counts While Observing a Client's

question 294

Multiple Choice

An auditor selected items for test counts while observing a client's physical inventory. The auditor then traced the test counts to the client's inventory listing. This procedure most likely obtained evidence concerning management's assertion of:

• A) Rights and obligations.
• B) Completeness.
• C) Existence.
• D) Valuation.

Recognize the impact of organizational success on ethical behavior within a company.

Identify effective strategies for mitigating unethical practices by foreign suppliers.

Analyze ethical business decisions through various ethical philosophies.

Apply the principles of utilitarian ethics in business decisions.

---

Definitions:

Contract Revenue

Revenue recognized by a company from contracts for the sale of goods or services, often recognized over the period of the contract based on the completion or delivery of services/goods.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

Recoverable Costs

Expenditures that a company expects to recover in the future through tax deductions, reimbursements, or as contracts costs.

Critical Event

A significant occurrence or change that impacts an organization's operations or decision-making process.