Your audit client is a shop that sells some of its own merchandise and some merchandise held on consignment.Which account balance assertion for inventory would you be most concerned about verifying?
A) Existence.
B) Completeness.
C) Rights and obligations.
D) Valuation and allocation.

Question

Quizplus · Accepted Answer

The rights and obligations assertion is crucial here because the auditor needs to verify that the inventory held on consignment is not recorded as the client's own inventory, ensuring that the client has the rights to the inventory they claim to own.

Your Audit Client Is a Shop That Sells Some of Its