The auditor must verify whether the physical counts were correctly summarized,the inventory quantities and prices were correctly extended,and the extended inventory was correctly footed.These tests are called
A)price tests.
B)compilation tests.
C)cost tests.
D)mechanical tests.

Question

Quizplus · Accepted Answer

The tests described in the question are commonly referred to as compilation tests, which include verifying the accuracy of the physical count, extending quantities and prices correctly, and footing the total inventory value. Price tests and cost tests are more specific types of tests that may be included in compilation tests, but they do not encompass all of the steps described in the question. Mechanical tests do not accurately describe the tests being performed, as they typically refer to the use of automated processes or controls.

The Auditor Must Verify Whether the Physical Counts Were Correctly