The Principle of Lower of Cost or Market and the Potential

Multiple Choice

The principle of lower of cost or market and the potential obsolescence of inventory are a concern for the audit team as

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.