ACCA · Question 09 · Audit evidence
CASE 2: GREENYIELD AGRI CO-OP
GreenYield Agri Co-op is a large agricultural cooperative specializing in organic crop production and livestock. You are the audit senior. The year-end is 31 December 2025. GreenYield uses an independent agronomist to value its biological assets. During the year, a new computerized inventory system was implemented. The audit team is planning the inventory count attendance and evaluating the reliability of the agronomist's report.
Which of the following substantive procedures would be appropriate to verify the VALUATION of the biological assets (livestock) at year-end? (Select ALL that apply)
Answer options:
Agreeing a sample of livestock fair values to independent agricultural market price lists at the year-end date.
Observing the physical condition of the livestock during the inventory count.
Tracing a sample of livestock tags from the physical count back to the inventory ledger.
Reviewing post year-end sales invoices for livestock to ensure they were sold for more than their carrying value.
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