Your client sells a high-technology product which is subject to frequent technological improvements and design changes in order to keep current with the market. Based on this information, for the inventory account, the
Assertion upon which you should concentrate your audit procedures is:
A) valuation and allocation.
B) existence.
C) completeness.
D) rights and obligations.

Question

Quizplus · Accepted Answer

The valuation and allocation assertion is crucial for high-technology products due to frequent technological improvements and design changes, which can lead to obsolescence and affect the inventory's value.

Your Client Sells a High-Technology Product Which Is Subject to Frequent