When Auditing Merchandise Inventory at Year-End,the Auditor Performs Audit Procedures

question 55

Multiple Choice

When auditing merchandise inventory at year-end,the auditor performs audit procedures to ensure that all goods purchased before year-end are received before the physical inventory count.This audit procedure provides assurance about which management assertion?

• A) Cutoff.
• B) Existence.
• C) Valuation and allocation.
• D) Rights and obligations.
• E) Occurrence.

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Definitions:

Past Communications

The term refers to previous exchanges of information or dialogues between parties, which could be in the form of emails, letters, meetings, etc.

Patients

Individuals receiving medical treatment, care, or evaluation from healthcare professionals or in a medical setting.

Available

Relating to something that is ready for use, accessible, or can be obtained.

Misinterpreted

Incorrectly understood or explained, leading to a misunderstanding of the original meaning.