Auditors are most likely to ensure that no production activity is scheduled prior to:
A)determining standard costs.
B)observing physical inventory.
C)completing the book to physical adjustment.
D)determining the amount of consigned inventory.

Question

Quizplus · Accepted Answer

Observing physical inventory is crucial for auditors to ensure accurate accounting and valuation of inventory before any production activity is scheduled. This helps in verifying the actual stock available and aids in the accurate recording of inventory levels, which is fundamental for financial reporting and operational planning.

Auditors Are Most Likely to Ensure That No Production Activity