An Auditor Must Inquire About Consigned or Customer Inventory Included

question 9

Multiple Choice

An auditor must inquire about consigned or customer inventory included on the client's premises to satisfy the balance-related audit objective of

• A) cutoff.
• B) classification.
• C) rights.
• D) completeness.

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Definitions:

Long-term Growth

The sustained increase in the economic performance or potential of an entity over an extended period, often involving strategies aimed at competitive advantage, market expansion, and innovation.

Company's Potential

The capacity or capability of a company to achieve future growth, success, or profitability.

Industry

Refers to the production of goods or related services within an economy, characterized by the specific sector or type of business.

Economic Health

The condition of an economy, often assessed through indicators such as GDP growth, unemployment rates, and inflation, reflecting overall prosperity and stability.