The test of details of balance procedure which requires the auditor to inquire of management for the possibility of the inclusion of consigned or other non- owned inventory is associated with the audit objective of:
A) realisable value.
B) existence.
C) rights.
D) completeness.

Question

Quizplus · Accepted Answer

The inquiry about consigned or non-owned inventory relates to the rights objective, as it helps determine whether the entity has ownership rights to the inventory reported on the balance sheet.

The Test of Details of Balance Procedure Which Requires the Auditor