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

A. Valuation

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.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.