Substantive audit procedures in the inventory process are
A)inspection of records,documents,or tangible assets
B)reviewing policies and procedures
C)monitoring
D)risk assessment
E)confirmation
F)both A and B
G)both A and E
H)both C and D

Question

Quizplus · Accepted Answer

The best choices for substantive audit procedures in the inventory process are inspection of records, documents, or tangible assets and confirmation. Both options are included in choice G. Inspection of records, documents, or tangible assets may include physically observing inventory counts or testing inventory pricing. Confirmations from third-party sources, such as suppliers or customers, can provide evidence of inventory ownership and valuation. The other options, reviewing policies and procedures, monitoring, and risk assessment, are more related to control procedures rather than substantive audit procedures for inventory.

Substantive Audit Procedures in the Inventory Process Are