When a significant proportion of inventories is stored in a public warehouse, the auditor may not be satisfied with its existence by merely obtaining a confirmation from the warehouseman.

Question

Quizplus · Accepted Answer

The auditor may require additional evidence beyond a warehouseman's confirmation to verify the existence and condition of inventories stored in a public warehouse, due to concerns about the reliability of such confirmations and the need for more comprehensive audit evidence.

When a Significant Proportion of Inventories Is Stored in a Public