Auditing the Valuation Assertion for Inventory of a Client Utilizing

question 13

Multiple Choice

Auditing the valuation assertion for inventory of a client utilizing the FIFO cost flow assumption will require the auditor to examine which of the following?

• A) Invoices representing the more recent purchases of inventory.
• B) Invoices representing the purchase of base year inventory in the year of inception.
• C) Shipping documents for a sample of cost of goods sold transactions during the year.
• D) Shipping documents for a sample of units on hand in the interim period.