Proper inventory pricing pertain to the valuation

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(C) You need to find the answer which is not one of the auditor's objectives for inventory procedures. Answer (C) is right because verifying that all inventory owned by the client is on hand at the time of the count is not an objective. There are several reasons that not all the inventory owned would be at the premises. For example, some inventory should also be included in inventory that is out on consignment. Some inventory is in transit at year-end, and if the terms are FOB manufacturer, it should be included in inventory. Answer (A) is wrong because inventory has a lot of presentation and disclosure requirements to which the auditor must pay attention. Answers (B) and

(D) are incorrect because proper accounting requires inventory be properly valued (valuation assertion) and damaged and obsolete items and proper inventory pricing pertain to the valuation.

Reference no: EM131046775

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