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

Question

Quizplus · Accepted Answer

Review of perpetual inventory records is the best option to learn about slow-moving inventory as it would provide information about the quantity and age of inventory, helping the auditor identify slow-moving inventory items. Reviewing the cash payments journal or enquiring sales personnel would not provide specific information about slow-moving inventory, and physical observation of inventory could be time-consuming and may not provide accurate information.

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