An Auditor Selected Items for Test Counts While Observing an Entity's

question 23

Multiple Choice

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

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

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Definitions:

Federal Budget Deficit

The deficit occurring when government spending surpasses its income in a specific fiscal year.

National Debt

The total amount of money that a country's government has borrowed, by various means, and has yet to repay.

Federal Government Budget Deficit

The financial situation in which the federal government's expenditures exceed its revenues, leading to borrowing and debt accumulation.

Interest Rates

The percentage charged on a loan or paid on deposited funds.