To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would trace
A)inventory tags noted during the auditor's observation to items in the inventory listing schedule.
B)inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices.
C)items in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.
D)items in receiving reports and vendors' invoices to the inventory listing schedule.

Question

Quizplus · Accepted Answer

Tracing items in the inventory listing schedule to inventory tags and the auditor's recorded count sheets would provide assurance that all inventory items in the client's inventory listing schedule are valid. This ensures that all inventory items have been physically counted and recorded accurately in the inventory listing schedule. Tracing inventory tags noted during the auditor's observation to items in the inventory listing schedule would only ensure the accuracy of the inventory tags, not the completeness of the inventory listing schedule. Tracing inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices would only confirm the existence of the items in the receiving reports and vendors' invoices, not their inclusion in the inventory listing schedule. Tracing items in receiving reports and vendors' invoices to the inventory listing schedule would only confirm the accuracy of the inventory listing schedule, not the completeness.

To Gain Assurance That All Inventory Items in a Client's