During the Observation of the Inventory Count, the Auditor Has

question 23

Multiple Choice

During the observation of the inventory count, the auditor has no responsibility to:

• A) watch for damaged and obsolete inventory items.
• B) make some test counts of inventory quantities.
• C) supervise the taking of the inventory.
• D) the auditor has responsibility for all of the above

---

Definitions:

Property Plant

Assets of a tangible nature, like buildings and machinery, used in operations and expected to be used over several years.

Equipment Section

Part of a company's balance sheet or financial statements that lists the tangible assets used in operations, like machinery, along with their net book values.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and equity as of a specific date.

Current Liabilities

Short-term financial obligations that are due within one year or within the current business cycle, whichever is longer.