When performing inventory valuation tests, the auditor must be concerned that the method is in accordance with accounting standards.

Question

Quizplus · Accepted Answer

It is important for the auditor to ensure that the inventory valuation method used by the client is in accordance with the relevant accounting standards, such as GAAP or IFRS. This is to ensure that the financial statements fairly present the value of the inventory and comply with regulatory requirements.

When Performing Inventory Valuation Tests, the Auditor Must Be Concerned