When Auditing Merchandise Inventory at Year-End, the Auditor Performs a Purchase

Multiple Choice

When auditing merchandise inventory at year-end, the auditor performs a purchase cut off test to obtain evidence that

A) All goods purchased before year-end are received before the physical inventory count.
B) Goods held on consignment for customers are not included in the inventory balance.
C) The stock of inventory on hand at year-end is neither pledged nor sold.
D) All goods owned at year-end are included in the inventory balance.