During attendance at the year-end inventory count, why does the auditor record the numbers of the last goods received note and goods dispatched note issued before the count?

Correct answer: D) To test cut-off of purchases and sales at the final audit

Explanation

Recording the last document numbers allows the auditor to check later that goods received before the count are included in both inventory and purchases, and that goods dispatched are excluded from inventory and included in sales. This tests cut-off. Valuation and the final listing are addressed by other procedures.