Which of the Following Is Not an Item Reviewed by the Auditor

question 97

Multiple Choice

Which of the following is not an item reviewed by the auditor to test the client's assertion related to the presentation and disclosure of inventory?

• A)The inventory valuation methods used.
• B)The amount of obsolete inventory on hand.
• C)The existence of contingent losses associated with long-term purchase commitments.
• D)The classification of inventory as raw material,work in process or finished goods.

---

Definitions:

Consumer Proposal

A legal process in Canada allowing indebted individuals to negotiate a settlement with their creditors to pay back a portion of their debts.

Insolvent Debtor

An individual or organization that cannot pay their debts as they come due, often leading to bankruptcy proceedings.

Student Loans

Financial loans provided to students to help cover the cost of higher education, which typically must be repaid after graduation.

Unsecured Creditors

Creditors who have no specific claim over the assets of a debtor in case of default, placing them lower in priority for repayment.