The major concerns in performing inventory valuation tests are compliance with GAAP and consistency with prior years.

Question

Quizplus · Accepted Answer

Compliance with GAAP (Generally Accepted Accounting Principles) is essential to ensure that the valuation of the inventory is accurate and consistent. Additionally, consistency with prior years' valuation is important to track the changes in the inventory levels over time and to make meaningful comparisons between different years.

The Major Concerns in Performing Inventory Valuation Tests Are Compliance