Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 221

Which of the following will most likely support the completeness criterion of a stock sample that is to be included in an inventory account?

Answer options

• 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.

Correct answer: C

Explanation

The correct answer is C because an inventory count conducted by warehouse personnel directly verifies the physical presence of stock, ensuring completeness. Options A and B do not guarantee that all items are counted, while D is about valuation rather than completeness.