Final answer:
To provide assurance regarding a manufacturing entity's relevant assertions about inventory valuation, auditors can perform a physical inventory count, reconcile inventory records to the general ledger, and conduct analytical procedures.
Step-by-step explanation:
To provide assurance regarding a manufacturing entity's relevant assertions about inventory valuation, the most likely auditing procedure would be a physical inventory count. This involves physically counting the inventory on hand to verify its existence and accuracy. By conducting a physical count, auditors can ensure that the inventory stated on the financial statements matches the actual inventory in the warehouse or factory.
Another auditing procedure that can provide assurance regarding inventory valuation is the reconciliation of inventory records to the general ledger. This involves comparing the inventory records maintained by the company to the general ledger balances. Any discrepancies can then be investigated and resolved.
Lastly, auditors can perform analytical procedures to assess the reasonableness of the inventory valuation. This involves analyzing historical inventory levels, sales trends, and industry benchmarks to determine if the inventory valuation is in line with expectations. If any significant deviations are identified, further investigation and adjustment may be necessary.