At the beginning of the observation of the inventory count, the auditor records the last bill of lading used by the company to
A)test inventory cut-off.
B)search for unrecorded sales.
C)verify inventory ownership.
D)record the inventory valuation of items received.

Question

Quizplus · Accepted Answer

Recording the last bill of lading used by the company helps the auditor to test inventory cut-off, which is the process of ensuring that all inventory transactions have been recorded in the correct accounting period.

At the Beginning of the Observation of the Inventory Count