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.

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Definitions:

Standard Deviation

An indicator of the degree to which a collection of numbers diverges or spreads from their average, signaling the extent of the distribution from the central value.

Portfolio

A collection of financial investments like stocks, bonds, commodities, and cash equivalents, as well as their mutual, exchange-traded, and closed-fund counterparts.

Proportion

A relationship between parts of a whole, expressed as a ratio or fraction, indicating how one part relates to another or to the whole.

Two-Asset Portfolio

A financial portfolio consisting of two different assets, aiming to diversify investment risks and returns.