From which of the following evidence-gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?
A)Observation of physical inventory counts
B)Written inventory representations from management
C)Confirmation of inventories in a public warehouse
D)Auditor's recomputation of inventory extensions

Question

Quizplus · Accepted Answer

Observation of physical inventory counts is the best evidence-gathering audit procedure to obtain the most assurance concerning the existence of inventories. This is because the auditor can physically observe the inventory, verify it against the inventory records, and ensure that it is accurately counted and valued. Other procedures may provide some level of assurance, but observation of physical inventory counts is the most reliable.

From Which of the Following Evidence-Gathering Audit Procedures Would an Auditor