To gain assurance that all inventory items in a client's inventory listing schedule are valid,an auditor most likely would trace
A)Inventory tags noted during the auditor's observation to items in the inventory listing schedule.
B)Inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices.
C)Items in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.
D)Items in receiving reports and vendors' invoices to the inventory listing schedule.

Question

Quizplus · Accepted Answer

Tracing items in the inventory listing schedule to inventory tags and the auditor's recorded count sheets would provide assurance that all items in the schedule are valid. This would involve verifying that each item on the schedule has a corresponding inventory tag and that the auditor's count sheet agrees with the inventory listing schedule. Option A traces only the inventory tags noted during the auditor's observation, which may not cover all items in the inventory listing schedule. Option B traces inventory tags to receiving reports and vendors' invoices, which may not verify the existence of all items in the inventory listing schedule. Option D traces receiving reports and vendors' invoices to the inventory listing schedule, which may not necessarily ensure the accuracy and completeness of the schedule.

To Gain Assurance That All Inventory Items in a Client's