In valuing inventory, the auditor must consider all but which of the following factors?
A) The valuation method must be in accordance with GAAP.
B) The valuation method must be applied on a consistent basis.
C) The inventory must be valued at the lower of cost or market.
D) All inventory must be valued using the same valuation method under GAAP.

Question

Quizplus · Accepted Answer

The statement "All inventory must be valued using the same valuation method under GAAP" is not entirely accurate. There are different acceptable methods for valuing inventory under GAAP, and the most appropriate method should be selected based on the nature of the business and the inventory being valued. Therefore, D is the exception as the statement is not entirely true.

In Valuing Inventory, the Auditor Must Consider All but Which