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:

Cognitive Heuristic

Simple, efficient rules which people often use to form judgments and make decisions; they are mental shortcuts that reduce the cognitive load of making a decision.

Proposition

A statement or assertion that expresses a judgment or opinion.

Prototype

A typical or standard example of a particular concept or category, often used as a reference point for comparing other items in the same category.

Subconscious

The subconscious is a part of the mind that operates below the level of conscious awareness, influencing thoughts, feelings, and behaviors without our direct knowledge.