Which of the Following Audit Objectives Relates Primarily to the Financial

question 23

Multiple Choice

Which of the following audit objectives relates primarily to the financial report assertion, rights and obligations?

• A)Inventories are properly classified in the statement of financial position as current assets.
• B)Inventories exclude items billed to customers or owned by others.
• C)Slow-moving and obsolete items included in inventories are properly identified.
• D)Inventory quantities include all products, materials and supplies owned by the company.

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Definitions:

Staff Units

Assist the line units by performing specialized services to the organization.

Marketing

The process or technique of promoting, selling, and distributing a product or service.

Output Controls

Output controls are controls that focus on desired targets and allow managers to use their own methods for reaching defined targets.

Corrective Action

Measures taken to rectify a problem, error, or deviation from standard procedures to ensure it does not recur.