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

Question

Quizplus · Accepted Answer

Physical examination is the best type of audit evidence to support the existence of inventory audit objective. By physically examining the inventory, the auditor can directly observe the existence and condition of the inventory, which provides strong evidence. Direct confirmation with vendor and examining invoices from vendors can help support the valuation and completeness objectives but not necessarily the existence objective. Examining the title for ownership of asset is more relevant for fixed assets rather than inventory.

Which Type of Audit Evidence Can the Auditor Use in Support