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.