Which type of audit evidence can the auditor use in support of the 'existence of inventory' audit objective?
A) direct confirmation with vendor
B) physical examination
C) examine title for ownership of asset
D) examine invoice from vendor

Question

Quizplus · Accepted Answer

The best type of audit evidence to support the existence of inventory audit objective is physical examination of the inventory. This involves the auditor counting and inspecting the inventory to ensure that it exists, is owned by the company, and is in the condition stated in the financial statements. Direct confirmation with vendor, examining title for ownership of asset, and examining invoice from vendor can provide evidence for different audit objectives, but not specifically for the existence of inventory.

Which Type of Audit Evidence Can the Auditor Use in Support