Which of the following auditing procedures probably would provide the most reliable evidence concerning the entitys assertion
Question:
a. Trace test counts noted during the entity’s physical count to the entity’s summarization of quantities.
b. Inspect agreements to determine whether any inventory is pledged as collateral or subject to any liens.
c. Select the last few shipping documents used before the physical count and determine whether the shipments were recorded as sales.
d. Inspect the open purchase order file for significant commitments that should be considered for disclosure.
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Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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