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Match the Transaction Audit Objectives with the Codes for the Assertion

Question 28

Matching

Match the transaction audit objectives with the codes for the assertion categories .

Premises:
Inventories included in the balance sheet physically exist.
Inventories and cost of goods sold are properly identified and classified in the financial statements.
The reporting entity has legal title to the inventories at the balance sheet date.
Inventories are properly stated at the lower of cost or market.
Inventories include all materials, products, and supplies on hand at the balance sheet date.
Responses:
Completeness
Existence or Occurrence
Rights and Obligations
Valuation or Allocation
Presentation and Disclosure

Correct Answer:

Inventories included in the balance sheet physically exist.
Inventories and cost of goods sold are properly identified and classified in the financial statements.
The reporting entity has legal title to the inventories at the balance sheet date.
Inventories are properly stated at the lower of cost or market.
Inventories include all materials, products, and supplies on hand at the balance sheet date.
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