An audit gathering procedure undertaken by an auditor to verify the balance of inventory on hand is
A) observation.
B) inquiry.
C) re-performance.
D) analytical procedures.

Question

Quizplus · Accepted Answer

Observation involves physically watching the inventory counting process to verify the balance of inventory on hand. This is the most appropriate procedure to verify inventory balance. Inquiries and analytical procedures may not provide sufficient evidence of the actual inventory balance on hand, while re-performance may not be feasible in all cases.

An Audit Gathering Procedure Undertaken by an Auditor to Verify