Your Audit Client Is a Retailer That Sells Some of Its

question 54

Multiple Choice

Your audit client is a retailer that sells some of its own merchandise and a large proportion of merchandise held on consignment from suppliers.Which account balance assertion for inventory would this cause to be most at risk?

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

---

Definitions:

Compensatory Behaviors

Actions taken to counteract or make up for undesirable thoughts, feelings, or actions, commonly observed in disorders like bulimia nervosa.

Purging

In the context of eating disorders, engaging in behaviors to rid the body of consumed food or calories, such as via vomiting or excessive use of laxatives, often in an attempt to lose weight.

High-Intensity Exercise

A form of physical activity that involves vigorous bursts of activity followed by short recovery periods.

Compensatory Behavior

Actions taken to offset or make up for another behavior, often observed in the context of psychological disorders, such as eating disorders.