An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management's financial statement (PCAOB) assertion of
A)valuation or allocation.
B)rights and obligations.
C)existence or occurrence.
D)presentation and disclosure.

Question

Quizplus · Accepted Answer

Inquiries of production and sales personnel about possible obsolete or slow-moving inventory would provide evidence to support the management's assertion of valuation or allocation, as it helps to determine if the inventory is properly valued at the lower of cost or net realizable value, and if allowances for inventory obsolescence or slow-moving items are appropriate.

An Auditor Most Likely Would Make Inquiries of Production and Sales