Confirmation Is Most Likely to Be a Relevant Form of Evidence

question 5

Multiple Choice

Confirmation is most likely to be a relevant form of evidence with regard to assertions about accounts receivable when the auditor has concerns about the accounts receivables'

• A)valuation.
• B)classification.
• C)existence.
• D)completeness.

---

Definitions:

Financial Statements

Formal records of the financial activities and condition of a business, entity, or individual.

FIFO

First-In, First-Out, an inventory valuation method where goods first bought are the first ones sold.

Input Cost Changes

Refers to variations in the cost of materials or labor that are used in the production of goods or services.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company has sold and replaced its inventory over a specific period. It measures the efficiency of inventory management.