An auditor compares receiving reports prepared during the last three days of the client's fiscal year with
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Question:
An auditor compares receiving reports prepared during the last three days of the client's fiscal year with the client's purchase orders.The auditor then traces all receiving reports supported by purchase orders to entries in the purchases journal, and from there to the inventory account in the general ledger.The auditor also traces from the receiving reports to the actual physical items in the client's inventory.These audit procedures are undertaken to provide evidence that:
A.
The client is not reporting sales revenue for items they do not carry in inventory.
B.
The client has met the completeness assertion for inventory.
C.
The inventory items on hand are not obsolete.
D.
The inventory items on hand are owned by the client.
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