If an auditor were concerned with obtaining evidence about the appropriateness of the value of inventory, which of the following tests would be most appropriate?
A) compilation tests
B) price tests
C) confirmation of inventory held by outside parties
D) physical examination of the inventory

Question

Quizplus · Accepted Answer

Price tests are most appropriate for obtaining evidence about the appropriateness of the value of inventory, as they directly assess whether the inventory is valued correctly in terms of its cost and net realizable value.

If an Auditor Were Concerned with Obtaining Evidence About the Appropriateness