Which of the following auditing procedures most likely would provide assurance about a manufacturing entity's inventory valuation?
A)Vouching the raw materials' costs to vendors' invoices.
B)Obtaining confirmation of inventories pledged under loan agreements.
C)Reviewing shipping and receiving cutoff activities for inventories.
D)Tracing test counts to the entity's inventory listing.

Question

Quizplus · Accepted Answer

Vouching the raw materials' costs to vendors' invoices helps ensure that the inventory is valued correctly by verifying the cost of raw materials, which is a key component of inventory valuation.

Which of the Following Auditing Procedures Most Likely Would Provide