How Does the Auditor Gather Evidence During the Physical Inventory

question 50

Multiple Choice

How does the auditor gather evidence during the physical inventory count?

• A)The auditor determines that the items on hand that are not owned by the client are counted.
• B)The auditor performs test counts at the same time the client is counting the inventory.
• C)Management observes that all inventory has been tagged and counted.The auditor verifies that management has performed this task.
• D)The auditor observes that client personnel are performing test counts in the areas where they are most familiar with the inventory.

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