While auditing inventory, the auditor analyzed inventory turnover rates and made inquiries of production supervisors and inventory control personnel about slow-moving or obsolete items in inventory. These procedures are designed to provide evidence to support management's assertion regarding:
A. Rights and obligations
B. Completeness
C. Existence
D. Valuation and allocation
Correct answer is Option D. Valuation and allocation. Explanation: While auditing inventory, the auditor analyzed inventory turnover rates and made inquiries of production supervisors and inventory control personnel about slow-moving or obsolete items in inventory. These procedures are designed to provide evidence to support management's assertion regarding: Valuation and allocation.
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