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XYZ Company normally values its inventory at the lower of cost or market. Market values have remained relatively stable over many years and the company's

XYZ Company normally values its inventory at the lower of cost or market. Market values have remained relatively stable over many years and the company's inventory seldom becomes obsolete. The company has several divisions that are audited by five different internal auditors--A, B, C, D, and E.

To verify the stated value of inventory, Auditor A interviewed a divisional manager and asked her for her estimate of the inventory value; Auditor B examined source documents to determine the acquisition cost of the inventory on hand; Auditor C examined the selling price of the inventory and then worked backward to estimate the cost based on the normal and customary markup on the inventory; Auditor D obtained a verified price list from suppliers and used prices from the list to value inventory on hand; Auditor E reviewed all inventory transactions recorded in the inventory ledger and verified the accuracy of a representative sample of those transactions.

Which auditor used the least reliable evidence?

Question 39 options:

Auditor A

Auditor B

Auditor C

Auditor D

Auditor E

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