Which of the Following Audit Objectives Does Not Relate Primarily

question 22

Multiple Choice

Which of the following audit objectives does not relate primarily to the financial report assertion of completeness?

• A) Inventories are reduced, when appropriate, to net realisable value.
• B) Inventory quantities include all products, materials and supplies on hand.
• C) Inventory listings are accurately compiled and the totals are properly included in the inventory accounts.
• D) Inventory quantities include products and materials owned by the company that are in transit or stored at outside locations.

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Definitions:

Investee

The company whose stock is purchased by the investor.

Held-to-Maturity Investments

Investments in debt securities that a company has the positive intent and ability to hold until maturity.

Broker's Commissions

This term refers to the fees that brokers earn for facilitating transactions or services such as sales of securities, real estate, or insurance policies.

Recorded

The action of entering or documenting information in a formal record or accounting system for future reference or analysis.