Question: An auditor is testing the Inventory account in the general ledger for the Accuracy and Valuation assertions. An audit procedure the auditor would likely use
An auditor is testing the Inventory account in the general ledger for the Accuracy and Valuation assertions. An audit procedure the auditor would likely use related to this audit objective is
Question options:
Observe the taking of the physical inventory.
Perform price tests using purchase invoices appropriate for the inventory flow assumption.
Confirm inventory on consignment.
Trace receiving reports to the inventory account in the general ledger.
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