Question: In testing inventory at an audit client in the retail industry, you note that some of the inventory is contracted to be held on consignment.

In testing inventory at an audit client in the retail industry, you note that some of the inventory is contracted to be held on consignment. As a result, which financial statement assertion is now relevant?

a. Rights and obligations.

b. Completeness.

c. Existence or occurrence.

d. Valuation or allocation.

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a Correct Rights and obligations is the correct answer By definition consignment inventory is a business model where a product is sold by a retail sto... View full answer

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