If there is a risk that management's assertion that recorded inventory exists is not valid, the auditor will
A) spend more time testing for the existence of recorded inventory.
B) spend less time testing for the existence of recorded inventory.
C) spend more time testing for the completeness of inventory.
D) not adjust their audit strategy.

Question

Quizplus · Accepted Answer

If there is a risk that management's assertion of recorded inventory existence is not valid, the auditor must increase the extent of their testing of the inventory's existence to gather more persuasive audit evidence. Therefore, spending more time testing for the existence of the recorded inventory is the best option.

If There Is a Risk That Management's Assertion That Recorded