When Testing the Existence Assertion for Inventory,the Auditor Would Most

question 60

Multiple Choice

When testing the existence assertion for inventory,the auditor would most likely

• A)observe the client's count of the annual physical inventory and test count.
• B)review vendor invoices for the amounts recorded.
• C)perform year-end tests of invoices received in the final month.
• D)trace raw material purchases to invoices and to the general ledger.

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Definitions:

La Niña

A climate pattern characterized by cooler than average sea surface temperatures in the central and eastern tropical Pacific Ocean, influencing global weather patterns.

Moist Air

Air that contains a high level of water vapor, often leading to higher humidity levels and affecting weather patterns and human comfort.

Precipitation

Any water substance, whether solid or liquid, that comes down from the clouds and touches the Earth, encompassing rain, snow, sleet, and hail.

Greenhouse Effect

The warming of Earth's surface and lower atmosphere caused by the presence of certain gases in the air which trap energy from the sun.