Which Statement Is Correct Relating to the Count of Inventory

question 14

Multiple Choice

Which statement is correct relating to the count of inventory when a company that specializes in taking such counts ("the company") is involved with counting a client's inventory?

• A)The auditor should consider the company a specialist,and follow the procedures outlined for addressing an auditor's specialist.
• B)The auditor should not consider the counts by the company,by themselves,sufficient appropriate audit evidence.
• C)The auditor must observe all inventory counts taken by the company.
• D)The auditor should observe a letter of representations form the company.

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Definitions:

Bilingual

The ability to speak and understand two languages with a high level of proficiency.

Natural Disasters

Severe and extreme weather events or earth processes that cause damage and pose risks to human health and safety.

Primary Appraisal

The initial process of evaluating a situation to determine its significance, potential impact, and whether it constitutes a threat, challenge, or harm/loss.

Relevant

Having significant and demonstrable bearing on the matter at hand or being closely connected to a subject.