What should an auditor do to ensure that stock is stated at the lower of cost and net realisable value?

(a) Select a sample of stock purchases made during the year and check the associated invoice to ensure they are not recorded at more than that value.

(b) Compare a sample of stock items held at year-end and compare their value with that for subsequent sales of similar items.

(c) Ensure that all stock items on hand at year-end have been properly recorded at cost when purchased.

(d) Ensure that stock that is not saleable is disclosed separately in the financial statements.

Choose the best answer.