Your client sells a high-technology product which is subject to frequent technological improvements and design changes in order to keep current with the market.Based on this information, for the inventory account, the assertion upon which you should concentrate your audit procedures is:
A)valuation and allocation.
B)existence.
C)completeness.
D)rights and obligations.

Question

Quizplus · Accepted Answer

The technological improvements and design changes affecting the high-technology product can have an impact on its valuation and allocation within the inventory account. Therefore, the assertion upon which audit procedures should concentrate is the valuation and allocation of inventory. This will include verifying the accounting methods used to value inventory, reviewing the product cost calculations to ensure they are accurate, and assessing whether any write-downs or write-offs have been appropriately accounted for.

Your Client Sells a High-Technology Product Which Is Subject to Frequent