Auditing the Valuation Assertion for Inventory of a Client Utilizing

question 20

Multiple Choice

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

• 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.