When the auditor selects a sample of inventory items from the perpetual inventory master file then searches out these items in the inventory warehouse,the auditor is collecting evidence to support which assertion?
A)Presentation.
B)Valuation.
C)Completeness.
D)Existence.

Question

Quizplus · Accepted Answer

When the auditor selects a sample of inventory items from the perpetual inventory master file and searches out those items in the inventory warehouse, they are collecting evidence to support the existence assertion. This assertion is concerned with whether the inventory balance represents actual tangible goods that exist, and the process of physically counting inventory items helps to provide evidence that they do exist.

When the Auditor Selects a Sample of Inventory Items from the Perpetual