The auditors believe there is a significant risk of obsolescence of inventories for a particular client.Which of the following procedures would be least likely to detect obsolescence? A)Performing analytical procedures. B)Using data analytics. C)Vouching purchases of inventory. D)Inquiries of production personnel.

Question

Quizplus · Accepted Answer

Vouching purchases of inventory may not reveal any information regarding the obsolescence of inventories. This procedure only verifies the occurrence and accuracy of purchase transactions, but not the potential for obsolescence. On the other hand, performing analytical procedures and using data analytics may provide insights into inventory levels and trends, which can help identify possible obsolescence. Inquiries of production personnel may also provide valuable information about inventory status and potential risks for obsolescence.

The Auditors Believe There Is a Significant Risk of Obsolescence