When testing the existence assertion for inventory,the auditor would most likely
A)observe the client's count of the annual physical inventory and test count.
B)review vendor invoices for the amounts recorded.
C)perform year-end tests of invoices received in the final month.
D)trace raw material purchases to invoices and to the general ledger.

Question

Quizplus · Accepted Answer

Testing the existence assertion for inventory typically involves observing the client's count of the physical inventory and performing test counts to ensure the inventory actually exists. Option B relates to testing completeness, while option C relates to testing cutoff. Option D relates to testing accuracy.

When Testing the Existence Assertion for Inventory,the Auditor Would Most