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SAP Certified Application Associate - Transportation Management in SAP S/4HANA
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NEW QUESTION: 1
To obtain assurance that all inventory items in a client's inventory listing are valid, an auditor most likely
A. Inventory tags noted during the auditor's observation to items listed in receiving reports and vendors'
B. Inventory tags noted during the auditor's observation to items in the inventory listing.
C. Items listed in receiving reports and vendors' invoices to the inventory listing.
D. Items in the inventory listing to inventory tags and the auditor's recorded count sheets.
Choice "D" is correct. Tracing from the inventory listing to the inventory tags and the auditor's recorded
count sheets verifies the validity (existence) of the items.
Choice "A" is incorrect. Tracing inventory tags noted during the auditor's observation to items listed in
receiving reports and vendors' invoices might be used to verify completeness of purchases or payables.
Choice "B" is incorrect. Tracing from receiving reports and vendors' invoices to the inventory listing are cut-
off procedures used to verify completeness of the inventory listing.
Choice "C" is incorrect. Tracing from inventory tags to the inventory listing schedule verifies the
completeness of the schedule, not the existence (or validity) of the items.
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