At the beginning of the observation of the inventory count,the auditor records the last bill of lading used by the company to
A)Search for unrecorded sales.
B)Test inventory cut-off.
C)Verify inventory ownership.
D)Record the inventory valuation of items received.

Question

Quizplus · Accepted Answer

Recording the last bill of lading used by the company helps the auditor test inventory cut-off. This means verifying that all items received before the end of the reporting period have been included in the ending inventory count and all items received after the end of the period have been excluded.

At the Beginning of the Observation of the Inventory Count,the