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4. When auditing inventories of raw materials, purchased parts, and/or merchandise inventory, the auditor’s most effective means for evaluating the valuation assertion is toa. Examine recent invoices from vendors, along with freight bills and compare with client’s unit costs, as adjusted for freight and discount.b. Compare purchases with prior year and with industry averages and account for significant fluctuations.c. Trace quantities from tags or count sheets to final inventory listings.d. Scan inventory listings for large extended amounts, and trace related quantities to auditor’s copy of the inventory tag or listing.
Question:4. When auditing inventories of raw materials, purchased parts, and/or merchandise inventory,the auditor’s most effective means for evaluating the valuation assertion is toa. Examine…
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