The Most Reliable Procedure for an Auditor to Use to Test

question 51

Multiple Choice

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to:

• A)Observe physical counts of the inventory items.
• B)Trace the total on the inventory listing to the general ledger inventory account.
• C)Obtain a confirmation from the client indicating inventory ownership.
• D)Analytically compare the current-year inventory balance to the prior-year balance.