Auditors Need to Understand the Client's Physical Inventory Count Controls

question 100

Multiple Choice

Auditors need to understand the client's physical inventory count controls before the count of the inventory begins so that

• A) the auditors can accurately count and tag the inventory for the client.
• B) the auditors can make constructive suggestions as to the adequacy of the procedures.
• C) the client will be informed on exactly what items the auditor intends to test count.
• D) the auditor can communicate any weaknesses directly to the audit committee.

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Definitions:

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