The Test of Details of Balance Procedure That Requires the Auditor

question 66

Multiple Choice

The test of details of balance procedure that requires the auditor to review contracts with suppliers and customers and inquire of management for the possibility of the inclusion of consigned or other non-owned inventory is an attempt to satisfy the objective of

• A)existence.
• B)completeness.
• C)realizable value.
• D)rights and obligations.

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Definitions:

Related Goods

Goods that are connected in some way, often through being complements or substitutes, affecting each other's demand and supply.

Consumer Income

The total amount of income received by consumers, including wages, salaries, benefits, and income from investments, which can influence spending patterns.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.