When auditing merchandise inventory at year-end, the auditor performs audit proceduresto obtain evidence that no goods held on consignment are included in the client’s ending inventory balance. This audit procedure provides assurance about which managementassertion?a. Completeness.b. Existence.c. Valuation and allocation.d. Rights and obligations.e. Occurrence.

Question

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.

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