Accounting · Audit Software and Inventory
Which of the following is a direct benefit of using audit software during the substantive testing of a client's inventory?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The automatic elimination of the need to perform physical inventory counts across different locations
- 2The absolute prevention of management fraud related to the valuation of obsolete inventory items
- 3The ability to select, stratify, and extract a sample of inventory data for testing, thereby reducing sampling risk✓
- 4The capacity to completely replace the requirement for obtaining independent external confirmations
Correct answer
The ability to select, stratify, and extract a sample of inventory data for testing, thereby reducing sampling risk
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