Your Audit Client Is a Shop That Sells Some of Its

question 51

Multiple Choice

Your audit client is a shop that sells some of its own merchandise and some merchandise held on consignment.Which account balance assertion for inventory would you be most concerned about verifying?

• A) Existence.
• B) Completeness.
• C) Rights and obligations.
• D) Valuation and allocation.

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Definitions:

Parallel Processing

denotes the brain's capacity to process multiple pieces of information simultaneously, allowing for tasks like visual recognition to occur quickly and efficiently.

Inattentional Blindness

The failure to notice a fully visible but unexpected object because attention was engaged on another task, event, or object.

Dual Processing

Dual processing theory suggests that thought can arise in two different ways, or as a result of two different processes, often at the conscious and subconscious levels simultaneously.

Change Blindness

A perceptual phenomenon where a change in a visual stimulus goes unnoticed by the observer, indicating the limitations of human attention.