When testing inventory items for pricing, the auditor should select items that:
A) have high prices.
B) have stable prices.
C) are representative.
D) both A and C

Question

Quizplus · Accepted Answer

The auditor should select items that are both high-priced and representative of the inventory. This will give a more accurate view of the overall inventory value and help identify any potential misstatements that could affect financial statements. Additionally, selecting items with stable prices will not necessarily provide more insight into the accuracy of inventory pricing.

When Testing Inventory Items for Pricing, the Auditor Should Select