A Client Maintains Perpetual Inventory Records in Quantities and in Dollars

question 59

Multiple Choice

A client maintains perpetual inventory records in quantities and in dollars. If the assessed control risk is high, an auditor would probably

• A)apply gross profit tests to ascertain the reasonableness of the physical counts.
• B)increase the extent of tests of controls relevant to the inventory cycle.
• C)request the client to schedule the physical inventory count at the end of the year.
• D)insist that the client perform physical counts of inventory items several times during the year.

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