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?

Multiple Choice

Existence or occurrence.

Rights and obligations.

Valuation or allocation.

Completeness.

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