The audit tests to verify that the client is using an inventory method which is generally accepted and to verify that physical counts were correctly summarized are performed during the audit of the
A) acquisition and payments cycle.
B) payroll and personnel cycle.
C) inventory and warehousing cycle.
D) sales and collection cycle.

Question

Quizplus · Accepted Answer

The audit tests to verify that the client is using an inventory method which is generally accepted and to verify that physical counts were correctly summarized are performed during the audit of the inventory and warehousing cycle. This audit cycle includes verifying the existence, completeness, and accuracy of inventory records, as well as determining whether the client's inventory method complies with generally accepted accounting principles.

The Audit Tests to Verify That the Client Is Using