Which of the Following Audit Objectives Relates Primarily to the Financial

question 35

Multiple Choice

Which of the following audit objectives relates primarily to the financial report assertion of presentation and disclosure-classification and understandability?

• A)Inventories are included in the statement of financial position as current assets.
• B)Inventories exclude items billed to customers or owned by others.
• C)Inventories are included in the statement of financial position at the lower of cost and net realisable value.
• D)Inventory quantities include all products, materials and supplies owned by the company that are in transit.

---

Definitions:

Rail

A mode of land transport involving trains traveling on tracks, typically used for carrying goods and passengers.

Yellow Dog Contract

An employment agreement where the worker promises not to join a labor union during the term of employment, now illegal in many jurisdictions.

Union Workers

Employees who are members of a labor union, which represents their interests in negotiations with employers.

Employers

Individuals or organizations that hire and pay people to work for them, typically controlling the terms of employment.