An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management's balance assertions about
A)Existence.
B)Rights and obligations.
C)Completeness.
D)Accuracy and valuation.

Question

Quizplus · Accepted Answer

Inventory turnover rates relate to how quickly inventory is being sold, which would provide evidence regarding the accuracy and valuation assertion. The existence assertion relates to whether inventory actually exists, the rights and obligations assertion relates to whether the inventory belongs to the company and whether it has any obligations related to the inventory, and the completeness assertion relates to whether all inventory has been included in the financial statements.

An Auditor Most Likely Would Analyze Inventory Turnover Rates to Obtain