Which of the following procedures would be most appropriate for testing the completeness assertion as it applies to inventory?
A)Scanning perpetual inventory, production, and purchasing records.
B)Examining paid vendor invoices.
C)Tracing inventory items from the tag listing back to the physical inventory quantities.
D)Performing cutoff procedures for shipping and receiving.

Question

Quizplus · Accepted Answer

Performing cutoff procedures for shipping and receiving ensures that transactions are recorded in the correct accounting period, which is crucial for testing the completeness assertion for inventory. This helps verify that all inventory that should be included in the financial statements is recorded.

Which of the Following Procedures Would Be Most Appropriate for Testing