An Auditor Must Inquire About Consigned or Customer Inventory Included

question 9

Multiple Choice

An auditor must inquire about consigned or customer inventory included on the client's premises to satisfy the balance-related audit objective of

• A) cutoff.
• B) classification.
• C) rights.
• D) completeness.

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Definitions:

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Dividends

A portion of a company's earnings that are distributed to shareholders, usually on a quarterly basis.

Profit Statements

Financial documents that provide a summary of a company's financial performance over a specific period, detailing revenue, expenses, and net profits.

Statements Of Cash Flow

Financial reports that provide a summary of the cash inflows and outflows for a business over a specific period of time, indicating its operating, investing, and financing activities.