Auditors record the last bill of lading used at the time of the inventory count to
A) search for unrecorded sales.
B) test cutoff.
C) verify ownership.
D) all of the above.

Question

Quizplus · Accepted Answer

Auditors record the last bill of lading used at the time of the inventory count to test cutoff, which ensures that inventory is recorded in the appropriate period. While the bill of lading may also provide information relevant to unrecorded sales and ownership, its primary purpose in this context is to test cutoff.

Auditors Record the Last Bill of Lading Used at the Time