To express an unqualified opinion on the balance sheet, the auditor must observe the beginning and ending inventories.

Question

Quizplus · Accepted Answer

To express an unqualified opinion on the balance sheet, the auditor does not necessarily need to observe the beginning inventory; observing the ending inventory and applying other auditing procedures can suffice for verifying the accuracy of the balance sheet. The necessity to observe beginning inventory directly relates more to the audit of the income statement (specifically cost of goods sold) rather than the balance sheet alone.

To Express an Unqualified Opinion on the Balance Sheet, the Auditor