The Costs Used to Value the Physical Inventory Must Be

question 58

Multiple Choice

The costs used to value the physical inventory must be tested to determine whether the client has correctly followed an inventory method that is in accordance with an acceptable financial reporting framework and is consistent with previous years.The audit procedures used to verify these costs are referred to as inventory

• A)price tests.
• B)compilation tests.
• C)cost allocation tests.
• D)consistency tests.