An auditor would be most likely to learn of slow-moving inventory through:
A) review of the cash payments journal.
B) inquiry of sales personnel.
C) review of perpetual inventory records.
D) physical observation of inventory.

Question

Quizplus · Accepted Answer

Slow-moving inventory can be identified through a review of perpetual inventory records as this record maintains an updated record of inventory levels and movements. Physical observation of inventory may also allow auditors to notice slow-moving inventory, but it could be time-consuming and less reliable. Review of the cash payments journal and inquiry of sales personnel are not related to slow-moving inventory.

An Auditor Would Be Most Likely to Learn of Slow-Moving