In the inventory process,the auditor typically uses only substantive testing due to the nature of the accounts in the business process.

Question

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Substantive testing is typically used in the inventory process because it involves physical counting of goods and verifying the existence and valuation of inventory. This is different from controls testing, which is used to test the effectiveness of internal controls over financial reporting.

In the Inventory Process,the Auditor Typically Uses Only Substantive Testing