The test of details of balance procedure which requires the auditor to perform tests of lower of cost or market, selling price, and obsolescence is an attempt to satisfy the objective of
A) existence.
B) completeness.
C) accuracy.
D) realizable value.

Question

Quizplus · Accepted Answer

The test of details of balance procedure that requires the auditor to perform tests of lower of cost or market, selling price, and obsolescence is an attempt to satisfy the objective of realizable value. This procedure is aimed at determining whether the inventory can be sold at a price close to its book value or not.

The Test of Details of Balance Procedure Which Requires the Auditor