Which of the following is not a reason for the special significance attached by the auditors to the verification of inventories? A)The determination of inventory valuation directly affects net income. B)The existence of inventories is inherently difficult to substantiate. C)Special valuation problems often exist for inventories. D)Inventories are often the largest current asset of an enterprise.

Question

Quizplus · Accepted Answer

The existence of inventories is not inherently difficult to substantiate. It may require physical verification and reconciliation with sales and purchase records, but it is not inherently more difficult than verifying other assets or liabilities. The other options are all valid reasons for the special significance attached by auditors to the verification of inventories.

Which of the Following Is not a Reason for the Special