You Are Auditing a Store That Sells Merchandise

question 34

Multiple Choice

You are auditing a store that sells merchandise. Some of the store merchandise is held on consignment. Which account balance assertion for inventory should you be most concerned about verifying?

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

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Definitions:

Depression

A frequent and severe mental health disorder marked by ongoing emotions of despair, desolation, and a disinterest or absence of enjoyment in pursuits.

Alcohol Use Disorder

An ailment marked by the unsuccessful effort to stop or moderate alcohol use, which persistently leads to undesired effects in one’s social environment, occupation, or physical health.

Inhibited Sexual Desire

A condition characterized by a persistent lack of sexual fantasies and desire for sexual activity.

Major Depressive Episode

A period characterized by pervasive feelings of sadness, loss of interest in activities, and other symptoms, significantly impairing daily function.