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:

External Rewards

Benefits or incentives provided by external sources, such as money, praise, or recognition, to motivate behavior.

Self-determination

The concept of individuals having the freedom and ability to make choices and control their own lives.

Competence Stage

refers to one of the levels in the psychological theory of skill acquisition, where an individual becomes consciously skilled at a task.

Learning Curve

The rate of a person's progress in gaining experience or new skills, typically described as the relationship between learning and time.