Accounting · Audit Procedures
Which of the audit procedures below is NOT appropriate in auditing the valuation assertion for inventory?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1For unsold inventory, assess the reasonableness of provisions for selling expenses by comparing selling expenses with inventory sold.
- 2For a sample of inventory sold just before and just after the year-end, match dates of sales invoices/postings to ledgers with dates on related goods dispatched notes.✓
- 3Assess the reasonableness of management's point estimates of realizable value of inventory that has not yet been sold by reviewing sales before the year-end, comparing values with inventory sold since the year-end, and considering pending offers.
- 4Agree the selling prices of inventory sold since the year-end to sales invoices and the cash book.
Correct answer
For a sample of inventory sold just before and just after the year-end, match dates of sales invoices/postings to ledgers with dates on related goods dispatched notes.
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