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Regular
Regular

Joined: 10 Oct 2008
Location: United States
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Posts: 120

Posted: 29 Mar 2009 at 11:38 \| IP Logged

The auditor should determine whether the client's presentation of inventories is in conformity with GAAP, including whether lower of cost or market principles were properly applied. Does anyone know the auditor is to test which assertion? Thanks

sashkacpa
Contributor

Joined: 12 Sep 2008
Location: United States
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Posts: 79

Posted: 29 Mar 2009 at 12:28 \| IP Logged

To make sure it is properly valued. Valuation assertion.

Auditor counts inventory to make sure it existence.

I failed AUD twice what do I know.

may09
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Joined: 17 Dec 2008
Location: United States
Online Status: Offline
Posts: 97

Posted: 29 Mar 2009 at 18:02 \| IP Logged

sashkacpa wrote:

To make sure it is properly valued. Valuation assertion.

Auditor counts inventory to make sure it existence.

I failed AUD twice what do I know.

The more you study, the more you learn..You'll do well this time..

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shyama
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Joined: 30 Mar 2008
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Posted: 30 Mar 2009 at 00:00 \| IP Logged

Inventory is valued at lower of Cost or Market value.... the auditor tests the valuation assertion in this case.

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