An Auditor Most Likely Would Make Inquiries of Production and Sales

question 56

Multiple Choice

An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management's financial statement (PCAOB) assertion of

• A)Valuation or allocation.
• B)Rights and obligations.
• C)Existence or occurrence.
• D)Presentation and disclosure.

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Definitions:

Boiling Point

The point at which the vapor pressure of a liquid matches the ambient pressure, leading to its transition into a gaseous state.

Compounds

Substances formed from the chemical combination of two or more elements, with a fixed ratio determining the composition.

Tertiary Amine

An amine in which the nitrogen atom is connected to three alkyl or aryl groups.

Compounds

Substances formed by the chemical combination of two or more elements in definite proportions and structure.