From which one of the following evidence-gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?
A) written inventory representations from management
B) confirmation of inventories in a public warehouse
C) observation of physical inventory counts
D) auditor's recomputation of inventory extensions

Question

Quizplus · Accepted Answer

Observation of physical inventory counts provides the auditor with the most assurance concerning the existence of inventories since they can physically observe and count the inventory. Written representations from management can be unreliable, confirmation of inventories in a public warehouse may not reflect the client's specific inventory, and auditor's recomputation of inventory extensions does not provide direct evidence of existence.

From Which One of the Following Evidence-Gathering Audit Procedures Would