You are currently on an audit of ABC Company, a business that manufactures custom home furniture and décor. Inventory ranges from everyday items that are low value but high volume to more expensive and specialized items. Inventory includes finished goods, work in process, and raw materials.

 

You've just observed the year-end inventory count and noted that inventory quantities are free of material misstatements. You also noted that inventory has been correctly calculated but now want to assess the net realizable value for possibilities of write-down.

 

What audit procedures would you perform to ensure that inventory is recorded at the lower of cost or NRV?

Answer rating: 100% (QA)

To ensure that inventory is recorded at the lower of cost or net realizable value NRV you could perf... View the full answer