[Pollomind]

Which of the following procedures would be most appropriate for testing the completeness assertion as it applies to inventory?

a. Performing cutoff procedures for shipping and receiving.

b. Tracing inventory items from the tag listing back to the physical inventory quantities.

c. Scanning perpetual inventory, production, and purchasing records.

d. Examining paid vendor invoices.

It says that the right answer is A…

REG - Passed
FAR - Passed
BEC - Passed
AUD - Passed

"Faith can move mountains. There's nothing impossible for God"

[Thrawn]

one way inventory can be misstated is if a company marks it as shipped when it is still on their shipping dock. so auditors test when items actually shipped to test revenue cut off and the related inventory balance.

BEC 87 Feb 14
REG 84 Apr 14
FAR 82 Nov 14
AUD 86 Feb 15

[ahugemistake]

Thrawn got it, but I would just like to add that the point of testing completion is to make sure that every inventory item that should have been recorded as of year end has been recorded.

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[Anonymous]

[Author]

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