An auditor selected items for test counts from a client's inventory listing before observing the client's physical inventory at the warehouse.The auditor then found the items selected at the warehouse and counted them.This procedure most likely obtained evidence concerning management's assertion of

Question

Quizplus · Accepted Answer

By performing the physical count of inventory items selected from the inventory listing, the auditor is obtaining evidence regarding whether the recorded inventory items actually exist in the warehouse or not. This is related to management's assertion of existence or occurrence, which states that the inventory items recorded in the financial statements actually exist and represent valid economic transactions. Therefore, option C is the correct answer. The other options are not directly related to the procedure performed by the auditor. Rights and obligations are related to whether the inventory items are owned by the company, completeness is related to whether all inventory items are recorded, and valuation is related to whether inventory is recorded at the appropriate cost.

An Auditor Selected Items for Test Counts from a Client's