If the auditor selects the sample of inventory items to count from the inventory listing at year-end,the auditor gathers evidence about which assertion(s)?
A)existence and occurrence.
B)accuracy.
C)valuation or allocation.
D)completeness.
E)presentation and disclosure.

Question

Quizplus · Accepted Answer

By selecting a sample of inventory items to count at year-end, the auditor is gathering evidence about whether the inventory actually exists (existence assertion) and whether it pertains to the company at year-end (occurrence assertion). This helps the auditor to confirm the completeness and accuracy of the inventory listing, but those assertions are not directly tested by selecting a sample of inventory to count. Valuation or allocation and presentation and disclosure assertions are also not directly tested by inventory counts.

If the Auditor Selects the Sample of Inventory Items to Count