During the course of an audit of a company's financial statements, an auditor will be concerned that the company's inventory:
A) Physically exists.
B) Is valued correctly.
C) Both physically exists and is valued correctly.
D) Is being stored in a secure manner.

Question

Quizplus · Accepted Answer

During an audit of a company's financial statements, the auditor must ensure that the inventory physically exists, as stated in the company's records. Additionally, the inventory must be valued correctly. Therefore, the correct answer is that the auditor will be concerned with ensuring that both conditions are met. The audit does not require the auditor to verify if the inventory is stored in a secure manner.

During the Course of an Audit of a Company's Financial