An Auditor Selected Items for Test Counts While Observing a Client's

question 74

Multiple Choice

An auditor selected items for test counts while observing a client's physical inventory.The auditor then traced the test counts to the client's inventory listing.This procedure most likely provided evidence concerning management's assertion of

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

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Definitions:

Direct Materials Quantity

The amount of raw materials used in the production of goods, directly tied to the output.