Which of the following would the auditor most likely do when testing the valuation assertion for inventory?
A)Confirm inventory on consignment.
B)Examine receiving reports for inventory,tracing the recorded amounts.
C)Observe the taking of physical inventory.
D)Vouch inventory purchases to vendor invoices.

Question

Quizplus · Accepted Answer

Vouching inventory purchases to vendor invoices helps ensure that the inventory is recorded at the correct cost, which is directly related to the valuation assertion.

Which of the Following Would the Auditor Most Likely Do