Manufacturing entity inventory valuation


Which of the following auditing procedures most likely would provide assurance about a manufacturing entity's inventory valuation?

a. Testing the entity's computation of standard overhead rates.

b. Obtaining confirmation of inventories pledged under loan agreements.

c. Reviewing shipping and receiving cutoff procedures for inventories.

d. Tracing test counts to the entity's inventory listing.

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Finance Basics: Manufacturing entity inventory valuation
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