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An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's financial statement assertion of

A. Valuation
B. Completeness
C. Existence or occurrence
D. Rights and obligations

1 Answer

7 votes

Answer:

A. Valuation

Step-by-step explanation:

An auditor Tests an entity's policy of obtaining credit approval before before shipping goods to customers in support of management's financial statement assertion of

A. Valuation or allocation

The company must ensure that the customer has sufficient valuation so that the customer is able to pay back the credit to the company. This is what the auditor tests.

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