Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about management's assertion of:

Question

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Choice "D" is correct. Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about management's assertion of valuation (i.e., has inventory been properly recorded at lower of cost or market?). Choice "A" is incorrect. Inquiries regarding obsolete or slow-moving inventory items provide little assurance regarding whether all transactions have been properly included (completeness). Choice "B" is incorrect. Inquiries regarding obsolete or slow-moving inventory items provide little assurance regarding whether all recorded transactions are real (existence). Choice "C" is incorrect. Inquiries regarding obsolete or slow-moving inventory items provide little assurance regarding whether all transactions are properly presented, described, and disclosed.

Inquiries of Warehouse Personnel Concerning Possible Obsolete or Slow-Moving Inventory