Problem $8($Financial Statement Assertions$)$

You have been assigned to work on the inventory observation of ABC Company as of December $31,2023.$ The manager on the engagement gives you some instructions regarding the inventory observation and gives you a listing of the inventory in your section. The inventory has been properly costed at FIFO and your focus is solely on the correctness of the quantities, the inventory existence, and the condition of the inventory. Prior to moving on to her section of the inventory observation, she $($the engagement manager$)$ looks at the inventory and says that you do not need to worry about its condition. She observed no issues with that. As she is leaving, she says to you. $$don$$t forget to make some selections from what you see in the warehouse and ask the client representative to show it to you on the list$.$ Your previous inventory observation training has really focused on making sure that you could physically verify the existence, description, and quantity of the in inventory on the list. But you did what the manager said and selected from that you physically saw and traced them back to the list as so description and quantities.

The most likely financial statement assertions you tested in the inventory observation were.

A$.$ Existence and valuation

B$.$ Completeness and existence

C$.$ Net realizable value of inventory