In an audit of inventories, an auditor would least likely verify that:
A)all inventory owned by the entity is on hand at the time of the count.
B)the entity has used proper inventory pricing.
C)the financial statement presentation of inventories is appropriate.
D)damaged goods and obsolete items have been properly accounted for.

Question

Quizplus · Accepted Answer

The auditor would least likely verify that all inventory owned by the entity is on hand at the time of the count because it's common for entities to have inventory in transit or at other locations, which may not be physically present during the count. The auditor's focus is more on ensuring that the inventory is properly accounted for, priced, and presented in the financial statements, and that adjustments for damaged or obsolete items are made, rather than physically verifying every item's presence.

In an Audit of Inventories, an Auditor Would Least Likely