You are gathering evidence for the audit objective that existing inventory items are included in the inventory listing schedule.The audit procedure that would provide you with the best evidence to confirm this objective is:
A)trace from inventory tags to the inventory listing schedule and make sure the inventory tag is included.
B)trace the inventory totals to the general ledger.
C)perform tests of lower-of-cost-or-market.
D)account for unused tags shown in the auditor's documentation to make sure no tags have been added.

Question

Quizplus · Accepted Answer

Tracing from inventory tags to the inventory listing schedule provides the most direct evidence that existing inventory items are included in the inventory listing schedule. This ensures that all items have been accounted for and no items have been omitted from the inventory listing schedule. Option B may provide some evidence, but it does not confirm that existing inventory items are included in the inventory listing schedule. Option C is not relevant to this audit objective, and option D only confirms the accuracy of the auditor's documentation, not the inventory listings schedule.

You Are Gathering Evidence for the Audit Objective That Existing