Which of the following will most likely support the completeness criterion of a stock sample that is to be included in an inventory account?
Which of the following will most likely support the completeness criterion of a stock sample that is to be included in an inventory account?
A: While important for assessing the value of inventory, this does not directly support completeness.
SORRY I MEANT B IS THE RIGHT ANSWER
Shipment advices received by the accounting department help verify that all goods received (or shipped out) are accurately recorded
Which of the following will most likely support the completeness criterion of a stock sample that is to be included in an inventory account? A. Periodic reviews of the inventory’s obsolescence. B. Shipment advices received by the accounting department. C. An inventory count undertaken by warehouse personnel. D. The inclusion of overhead costs in the inventory’s value
Option C is Correct: Inventory counts (also called physical counts) are a direct method of verifying the existence and completeness of inventory. When warehouse personnel conduct an inventory count, and the auditor reconciles that count with the recorded inventory, it helps confirm that: All physical stock is included in the accounting records. No stock is omitted (supporting completeness)