The auditor must verify whether the physical counts were correctly summarised, the inventory quantities and prices were correctly extended, and the extended inventory was correctly footed.These tests are called:
A) cost tests.
B) mechanical tests.
C) price tests.
D) compilation tests.

Question

Quizplus · Accepted Answer

The tests described in the question are compilation tests, which involve verifying mathematical accuracy and summarization of data. Cost tests would involve testing the accuracy of the cost assigned to inventory items, mechanical tests are not a recognized audit term, and price tests would involve verifying the accuracy of the prices assigned to inventory items.

The Auditor Must Verify Whether the Physical Counts Were Correctly