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Name Two Account Balance Management Assertions Pertaining to Inventory and Explain

question 21

Essay

Name two account balance management assertions pertaining to inventory and explain why they are considered in an audit.


Definitions:

Necessary Condition

A condition that must be present for an event or situation to occur; without it, the event cannot happen.

Sufficient Condition

A condition that, if satisfied, guarantees the occurrence or validity of another event or condition.

Methods of Agreement and Difference

Scientific research methods used to determine the cause of a phenomenon by examining cases where the phenomenon does and does not occur.

Method of Agreement

A principle in comparative research where common factors of various instances of a phenomenon are identified to determine the cause.

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