Which of the Following Audit Objectives Relates Primarily to the Financial

question 25

Multiple Choice

Which of the following audit objectives relates primarily to the financial report assertion of 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 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:

Seam Welds

Continuous welds made along the seam of two materials, such as sheets or panels, to join them together.

Reference

A notation on a document pointing to additional information or to a source where further details can be found.

Plug Welds

Welds made by filling a hole in one piece of metal with molten metal to join it to an adjacent piece, often used in sheet metal applications.