Solved

The Principle of Lower of Cost or Market and the Potential

Question 78

Multiple Choice

The principle of lower of cost or market and the potential obsolescence of inventory are a concern for the audit team because of which of the following?


A) They are uncommon and may not exist.
B) They are a burden to the auditor in the undue amount of work caused.
C) They are likely to occur in the last month of the year and cause cutoff problems.
D) They are an inherent component of complexity related to valuation.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: Many frauds are committed by overstating inventory

Q22: The auditor may test a manufacturing client's

Q46: The acquisition and payment cycle includes processes

Q58: The lower of cost or market assumption

Q71: Preparing for an inventory observation In the

Q74: An auditor reviews purchase contracts to assess

Q77: During the counting process of inventory, the

Q82: Which of the following is NOT a

Q83: Generally accepted auditing standards (GAAS) require the

Q88: Inventory obsolescence procedures Identify and describe at