Identify the Appropriate Account Balance Audit Objectives Applicable to Inventories

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Examlex · Accepted Answer

The Answer is -existence- inventories included in the balance sheet physically exist.
-completeness - inventories include all materials, products and supplies on hand at balance date.
-rights and obligations - the entity has rights to the inventories included in the balance sheet.
-valuation and allocation - inventories are properly stated at the lower of cost and net realisable value, determined in accordance with applicable accounting standards.
-presentation and disclosure - inventories are properly identified and classified in the financial statements; disclosures relating to the classification, basis of valuation and the pledging of inventories are adequate.

Identify the Appropriate Account Balance Audit Objectives Applicable to Inventories

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