Which of the PCAOB Assertions (A-E)are Best Verified by the Following

question 16

Short Answer

Which of the PCAOB assertions (A-E)are best verified by the following audit procedures (1-4)?
A. Existence or occurrence.
B. Rights and obligations.
C. Valuation or allocation.
D. Completeness.
E. Presentation and disclosure.

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Definitions:

Cost Of Goods Sold

represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Merchandise Purchases

The acquisition of goods that a company intends to resell to customers.

Fixed Product Cost

Costs that do not vary with the level of production or sales, such as salaries of permanent employees and rent.

Factory Supervisor

An individual who oversees the work of employees in a manufacturing facility, ensuring that production goals and standards are met.