Multiple Choice Questions
a. An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete inventory to address:
(1) Valuation.
(2) Rights.
(3) Existence.
(4) Presentation.

b. An auditor selects items from the client’s inventory listing and identifies the items in the warehouse. This procedure is most likely related to:
(1) Rights.
(2) Completeness.
(3) Existence.
(4) Valuation.

c. An auditor concluded that no excessive costs for an idle plant were charged to inventory.
This conclusion is most likely related to presentation and disclosure and:
(1) Valuation.
(2) Completeness.
(3) Existence.
(4) Rights.

d. During the inventory count an auditor selects items and determines that the proper description and quantity were recorded by the client. This procedure is most closely related to:
(1) Rights.
(2) Completeness.
(3) Existence.
(4) Valuation.

e. An auditor most likely would analyze inventory turnover rates to obtain evidence about:
(1) Existence.
(2) Rights.
(3) Presentation.
(4) Valuation.