An auditor selected a product maintained in the finished goods warehouse. The auditor counted the product and compared this amount with the amount in the finished goods perpetual inventory subsidiary account. Which ASB balance assertion is the auditor most likely testing?
A)Existence
B)Completeness
C)Rights and obligations
D)Valuation

Question

Quizplus · Accepted Answer

By counting the physical inventory and comparing it with the perpetual inventory records, the auditor is primarily testing completeness, i.e. whether all the units of the product have been recorded in the perpetual inventory account. The other assertions (existence, rights and obligations, and valuation) are less relevant to this particular procedure.

An Auditor Selected a Product Maintained in the Finished Goods