When ICFR and the Quality of Perpetual Inventory Records Justify

question 35

Multiple Choice

When ICFR and the quality of perpetual inventory records justify relying on an inventory count by the company at other than fiscal year end, the auditor's testing should include each of the following except:

• A) verification of inventory purchases occurring during the period between the time of the physical count and year end.
• B) tests of controls performed during the period between the time of the physical count and year end.
• C) reconciliation of the count result to the final inventory balances in the financial statements.
• D) verification of sales transactions during the period between the time of the physical count and year end.

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Definitions:

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