If There Is a Risk That Management's Assertion That Recorded

question 53

Multiple Choice

If there is a risk that management's assertion that recorded inventory exists is not valid, the auditor will

• A) spend more time testing for the existence of recorded inventory.
• B) spend less time testing for the existence of recorded inventory.
• C) spend more time testing for the completeness of inventory.
• D) not adjust their audit strategy.

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Definitions:

Elected Leaders

Individuals who have been chosen through a voting process to hold positions of authority and make decisions on behalf of a group or organization.

Omnipotent Authority

The concept of having unlimited power and authority, often referred to in the context of a deity or a hypothetical leader with absolute control.

Developing Others

The act of helping people grow and improve their skills or abilities, often through teaching, mentoring, or leadership.

Encouragement

The act of giving support, confidence, or hope to someone.