In valuing inventory, the auditor must consider all but which of the following factors?
A) The valuation method must be in accordance with GAAP.
B) The valuation method must be applied on a consistent basis.
C) The inventory must be valued at the lower of cost or market.
D) LIFO must be used for work-in-process inventory.

Question

Quizplus · Accepted Answer

The statement "LIFO must be used for work-in-process inventory" is incorrect as there is no requirement to use LIFO for any type of inventory. The other three factors listed are important considerations when valuing inventory.

In Valuing Inventory, the Auditor Must Consider All but Which