Which of the following would the auditor most likely do when testing the valuation assertion?
A)Confirm inventory on consignment.
B)Examine receiving reports for inventory,tracing the recorded amounts.
C)Observe the taking of physical inventory.
D)Trace raw material purchases to vendor invoices.

Question

Quizplus · Accepted Answer

Tracing raw material purchases to vendor invoices helps verify that the inventory is recorded at the correct cost, which is related to the valuation assertion.

Which of the Following Would the Auditor Most Likely Do