When testing the valuation assertion,the auditor would most likely
A)confirm inventory on consignment.
B)examine receiving reports for inventory,tracing them recorded amounts.
C)observe the taking of physical inventory.
D)perform price tests to the related cost flow assumption.

Question

Quizplus · Accepted Answer

Performing price tests to the related cost flow assumption helps ensure that inventory is valued correctly according to the accounting policies, addressing the valuation assertion.

When Testing the Valuation Assertion,the Auditor Would Most Likely