An Auditor Selected Items for Test Counts from a Client's

question 135

Multiple Choice

An auditor selected items for test counts from a client's inventory listing before observing the client's physical inventory at the warehouse.The auditor then found the items selected at the warehouse and counted them.This procedure most likely obtained evidence concerning management's assertion of

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

---

Definitions:

Cognitive Psychology

A branch of psychology that explores internal mental processes such as problem solving, memory, learning, and language.

Behaviorism

A theoretical orientation based on the premise that scientific psychology should study only observable behavior, emphasizing the effects of environment on behavior.

Logical Evaluation

The process of examining statements, hypotheses, or arguments critically and systematically using reasoning and logic to assess their validity or soundness.

Reason

The mental capacity of an individual to apply logic in analyzing and solving problems, and in making decisions or forming judgments.