Which of the Following Audit Objectives Relates Primarily to the Financial

question 72

Multiple Choice

Which of the following audit objectives relates primarily to the financial report assertion, valuation and allocation?

• A) Inventory listings are accurately compiled and the totals are properly included in the inventory accounts.
• B) Inventory quantities include all products, materials and supplies owned by the company that are in transit.
• C) Slow-moving, excess, defective and obsolete items included in inventories are properly identified.
• D) Inventories exclude items billed to customers or owned by others.

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Definitions:

Contingency Contracting

A behavioral strategy involving a formal agreement between parties outlining specific behaviors and consequences or rewards.

Reciprocal Behavioral Agreement

An agreement between parties to engage in specific behaviors that are beneficial to each other, establishing a mutual exchange of positive actions.

Potential Barriers

are obstacles or challenges that might impede progress or the achievement of an objective.

Linear Thinking

A sequential thought process where ideas follow one another in a straightforward, step-by-step progression, often leading to a predictable outcome.