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 which audit objective?
A) rights
B) completeness
C) existence
D) realisable value

Question

Quizplus · Accepted Answer

The audit objective of "rights" involves ensuring that the entity has the rights to the assets it reports, in this case, inventory. Inquiring about consigned or non-owned inventory helps verify that the reported inventory actually belongs to the entity, aligning with the "rights" objective.

The Test of Details of Balance Procedure Which Requires the Auditor