A typical substantive procedure for inventory balance and purchase transactions may include performing lower of cost and net realizable value test. Which of the following assertions is addressed by the audit procedure previously mentioned? * A. II, III and IV B. III and IV C. IV and VII D. IV, VI and VII E. III, IV, V and VII

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 34MCQ: Which management assertion addresses whether the components of the financial statements arc properly...
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The following question pertain to the financial statement assertions enumerated
below:
T- Existence or Occurrence
Il - Completeness
III - Cut-off
IV - Valuation and Allocation
V- Accuracy
VI - Rights and Obligations
VII – Presentation and Disclosure and Classification
Transcribed Image Text:The following question pertain to the financial statement assertions enumerated below: T- Existence or Occurrence Il - Completeness III - Cut-off IV - Valuation and Allocation V- Accuracy VI - Rights and Obligations VII – Presentation and Disclosure and Classification
A typical substantive procedure for inventory balance and purchase transactions may
include performing lower of cost and net realizable value test. Which of the following
assertions is addressed by the audit procedure previously mentioned? *
A. II, III and IV
B. III and IV
C. IV and VII
D. IV, VI and VII
E. III, IV, V and VII
Transcribed Image Text:A typical substantive procedure for inventory balance and purchase transactions may include performing lower of cost and net realizable value test. Which of the following assertions is addressed by the audit procedure previously mentioned? * A. II, III and IV B. III and IV C. IV and VII D. IV, VI and VII E. III, IV, V and VII
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