A common inventory observation procedure is to be alert for items that are damaged,rust- or dust-covered,or located in inappropriate places.The balance-related audit objective achieved by this procedure is
A)classification.
B)cutoff.
C)valuation.
D)rights.

Question

Quizplus · Accepted Answer

The balance-related audit objective achieved by the procedure of being alert for damaged or inappropriate items is valuation. This is because damaged or misplaced items may not be valued correctly, and identifying such items helps ensure accurate inventory valuation on the balance sheet.

A Common Inventory Observation Procedure Is to Be Alert for Items