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lions [1.4K]
3 years ago
10

SCENARIO: After reviewing the balance sheet and corresponding documentation, Nick found that the inventory balance has increased

significantly over the prior year. Nick is concerned that not all of the inventory items that the client claims they have per the accounting records are actually in the warehouse. Nick is concerned about the _____________________ of the inventory balance.
Social Studies
1 answer:
KonstantinChe [14]3 years ago
6 0

Answer:

Existence or Occurrence

Explanation:

Based on the information provided within the question it seems that Nick is concerned about the Existence or Occurrence of the inventory balance. This is an assertion that tries to verify if certain assets exist and if the transactions that have been recorded actually happened. Since Nick believes that the inventory balance increase seems suspicious he is concerned that there may be fraud or a mistake in the records, therefore he may have to go to the inventory and check for himself.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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