When Perpetual Inventory Records Are Maintained, and Control Risk for Inventory

question 38

Multiple Choice

When perpetual inventory records are maintained, and control risk for inventory is high, the auditor would probably:

• A)insist that the client perform physical counts of inventory items several times during the year.
• B)want the client to schedule the physical inventory count at the end of the year.
• C)increase tests of controls around sales and purchases.
• D)increase the extent of tests for unrecorded liabilities at the end of the year.

---

Definitions:

Human Resource Manager

A professional responsible for overseeing all aspects of employee management, including recruiting, training, benefits administration, and compliance with labor laws.

Health Clinic

A medical facility offering primary healthcare services to patients, often focusing on outpatient care.

Prospective Employer

An employer with whom an individual might potentially enter into a working relationship.

Job Hunters

Individuals actively seeking employment opportunities, often employing various strategies and tools to find suitable positions.