Inventory Is a Complex Area to Audit for All Except

question 90

Multiple Choice

Inventory is a complex area to audit for all except which of the following reasons?

• A) Inventory is often in different locations.
• B) There are several acceptable valuation methods and some entities use different methods for different types of inventory.
• C) Inventory is often the largest account on the balance sheet.
• D) Inventory valuation includes few estimates.