Based on Conversations with the Owner-Manager of an Audit Client

question 57

Multiple Choice

Based on conversations with the owner-manager of an audit client, the auditor ascertained that the company's primary motivation is to avoid paying income taxes. Based on this motivation, which account balance assertion for ending inventory will the auditor be most concerned about verifying?

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

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Definitions:

Juggernaut

A powerful, unstoppable force or entity that crushes whatever is in its path, often used metaphorically to describe social or technological trends.

Disembedding

The process by which social relations are lifted out of local contexts and restructured across indefinite spans of time and space.

Reflexivity

A concept in sociology and anthropology that involves the critical analysis of how one's own identity, values, or perspective influences research outcomes or interactions within a society.

Modernity

Refers to the social conditions and cultural norms that emerged in Europe from about the 17th century onwards, characterized by the growth of democracy, capitalism, secularization, and rationalization.