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:

Characteristic

A distinguishing trait, quality, or property that defines an individual, group, or thing.

Stigma

A mark of disgrace associated with a particular circumstance, quality, or person.

Homosexuals

Individuals who are sexually attracted to people of their own sex.

Parents

Biological, adoptive, or foster individuals who care for and raise children, providing emotional, financial, and physical support.