Which of the following management assertions is NOT relevant to inventory?
A)Existence or occurrence.
B)Completeness.
C)Rights and obligations.
D)Reporting.

Question

Quizplus · Accepted Answer

Reporting is not relevant to inventory because it is not about whether inventory actually exists or whether financial statements include all inventory - it is more about how the inventory is presented in the financial statements. The other assertions (existence or occurrence, completeness, and rights and obligations) are all relevant to inventory because they relate to whether the inventory actually exists, has been properly counted and valued, and belongs to the company.

Which of the Following Management Assertions Is NOT Relevant to Inventory