CAF-8 · Chapter 9 · Question 8 of 10
To verify the valuation of a large inventory of raw materials, the auditor should:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Trace the purchase prices from a sample of recent supplier invoices and compare them with the carry value.
Explanation
Comparing recorded values to original cost evidence (invoices) is a fundamental substantive test for the valuation of raw materials.
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