If a Client Intends to Count Inventory at an Interim

question 108

Multiple Choice

If a client intends to count inventory at an interim date, the auditor should expect there to be all of the following except

• A) controls over the preparation and maintenance of perpetual inventory records.
• B) competent personnel assigned to count the inventory.
• C) third-party inventory counting specialists.
• D) an adequately designed plan to count the inventory.

---

Definitions:

Unconditionally Appropriated

Assets or funds that are designated for a specific purpose or recipient without any conditions attached.

Assent

Agreement to the terms of an offer in contract law, which is a necessary component of contract formation.

Consumer Transaction

A commercial interaction between a seller and a consumer, often involving the purchase and sale of goods or services.

Breach of Contract

The failure to fulfill the terms of an agreement, which can lead to legal action and the imposition of damages to remedy the breach.