An Auditor Selected Items from the Client's Detailed Inventory Listing

question 44

Multiple Choice

An auditor selected items from the client's detailed inventory listing (that agreed to the financial statements) . During the physical inventory observation, the auditor then found each item selected and counted the number of units on hand. Assuming that the amount on hand was the same as the amount in the client's detailed inventory listing, this procedure most likely would provide evidence concerning management's assertion of:

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

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Definitions:

Process Innovations

The implementation of new or significantly improved production or delivery methods in an organization.

Product Innovations

The creation or significant improvement of goods or services that offer new or additional benefits to the customer.

Extrinsic Rewards

Benefits or incentives given to individuals by external factors or organizations, such as money, prizes, or recognition.

Creative Behaviour

The capability to come up with original and useful ideas, solutions, or approaches in various contexts.