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.

---

Definitions:

HDMI

High-Definition Multimedia Interface, a proprietary audio/video interface for transmitting uncompressed video data and compressed or uncompressed digital audio data from an HDMI-compliant source device.

USB Port

A Universal Serial Bus port that allows devices to be connected to a computer, facilitating data transfer and device charging.

High-Capacity

A term used to describe storage media or devices capable of holding a large amount of data.

Hard Drive

A non-volatile storage device that uses magnetic storage to store and retrieve digital information using one or more rotating disks.