An Auditor Will Usually Trace the Details of the Test

question 65

Multiple Choice

An auditor will usually trace the details of the test counts of inventory items selected from the factory floor while observing the inventory stocktake through to a final inventory schedule. This audit procedure is undertaken to
Provide evidence of which assertion(s) ?

• A) Valuation and allocation.
• B) Existence.
• C) Completeness.
• D) Cut-off.

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Definitions:

Tariff Revenue

Income that a government receives from imposing duties on imported goods.

Foreign Producers

Companies or individuals that manufacture or provide services in one country for consumption in another country.

Domestic Producers

Local or national firms and individuals that produce goods and services within a country.

Free Trade

The absence of tariffs, duties, or trade barriers between countries, allowing for the unrestricted exchange of goods and services.