- 1 Marks
AA – L2 – SA – Q3.8 – Substantive Test for Inventories
Non-substantive test for inventory audit.
Question
Which of the following is NOT a substantive test for the audit of inventories?
A Test the updating of all inventory count differences to inventory records
B Test the accuracy of net realizable value through the review of post year-end sales
C Have satisfactory explanations been explained for all material inventory count differences
D Check that all administrative overheads have been correctly accrued for in the valuation of inventories
Find Related Questions by Tags, levels, etc.
- Tags: ICAG, Inventories, Substantive Test, Valuation
- Level: Level 2
- Topic: Audit and Assurance Evidence
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