Question

Completeness is one of the general assertions regarding a client's inventory balance. Which of the following is not a substantive auditing procedure related to this assertion?

A)Tracing from the general ledger to the inventory listing.
B)Observation of the client's procedures for recording inventory transactions.
C)Confirmation of inventory held by third parties.
D)Vouching from the inventory listing to the general ledger.

Answer 1

Vouching from the inventory listing to the general ledger is not a substantive auditing procedure related to the completeness assertion for inventory balances. This process is more related to the existence assertion rather than ensuring that all inventory transactions are recorded.

Step-by-step explanation:

The student is asking about substantive auditing procedures related to the assertion of completeness for a client's inventory balance. The procedure that is not related to this assertion is D) Vouching from the inventory listing to the general ledger.

This is because vouching is generally concerned with the existence and occurrence assertions, which ensure that the transactions that have been recorded and the balances that exist are accurate and have actually occurred. In contrast, the completeness assertion is concerned with ensuring that all transactions and balances that should have been recorded actually have been.