An Auditor's Observation Procedures for Inventory May Be Performed During

question 10

Multiple Choice

An auditor's observation procedures for inventory may be performed during or after the end of the period under audit under which of the following conditions?

• A)When the client maintains periodic inventory records.
• B)When the auditor finds minimal variations in client records and test counts in prior periods.
• C)When total inventory has not varied more than 5% in the last five years.
• D)When well-kept perpetual inventory records are checked by the client periodically by comparisons with physical counts.

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