The auditor may spend more time testing the existence assertion of recorded inventory in all of the following EXCEPT _______.
A)office supply stores
B)jewelry stores
C)the Apple store that sell iPhones and iPads
D)exclusive sunglass stores (e.g., selling Oakley and Ray Ban sunglasses)

Question

Quizplus · Accepted Answer

Office supply stores typically have low-risk inventory items that are readily verifiable, such as pens, paper, and staplers. Therefore, the auditor may spend less time testing the existence assertion for inventory in these stores compared to other types of stores that have higher-risk inventory items.

The Auditor May Spend More Time Testing the Existence Assertion