When Auditors Observe the Client Counting Inventory, They Should Be

question 99

Multiple Choice

When auditors observe the client counting inventory, they should be careful to do all of the following except

• A) inquire about items that are likely to be obsolete or damaged.
• B) calculate the unit cost of the inventory items.
• C) discuss with management the reasons for excluding any material items.
• D) observe the counting of the most significant items.

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Definitions:

Enteric Nervous System

The Enteric Nervous System is a network of neurons that govern the functions of the gastrointestinal tract, often referred to as the "second brain."

Oropharyngeal Membrane

The oropharyngeal membrane is an embryonic structure that contributes to the formation of the mouth and pharynx in a developing embryo.

Cloacal Membrane

In early embryonic development, the membrane that temporarily closes the ventral body wall at the location of the future anus and urogenital openings.

Digestive Tract

Mouth, oropharynx, esophagus, stomach, small intestine, and large intestine.