When auditing merchandise inventory at year-end,the auditor performs audit procedures to obtain evidence that no goods held on consignment are included in the client's ending inventory balance.This audit procedure provides assurance about which management assertion?
A) Completeness.
B) Existence.
C) Valuation and allocation.
D) Rights and obligations.
E) Occurrence.

Question

Quizplus · Accepted Answer

This audit procedure ensures that the client has the rights to the inventory and that goods held on consignment, which the client does not own, are not incorrectly included in the inventory balance.

When Auditing Merchandise Inventory at Year-End,the Auditor Performs Audit Procedures