When auditing inventories, an auditor would least likely verify that
A)all inventory owned by the client is on hand at the time of the count.
B)the client 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

Verifying that all inventory owned by the client is on hand at the time of the count is not always possible or practical, especially for items in transit or held at third-party locations. Auditors focus on proper inventory pricing, appropriate financial statement presentation, and the correct accounting for damaged and obsolete items.

When Auditing Inventories, an Auditor Would Least Likely Verify That