A Client Maintains Perpetual Inventory Records in Both Quantities and Dollars.If

question 29

Multiple Choice

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

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