An Auditee May Count the Inventory at a Date Other

question 55

Multiple Choice

An auditee may count the inventory at a date other than the balance sheet date.Which of the following is necessary if the auditor plans to observe the count on a non-balance sheet date?

• A)Complete recounts by independent teams must be performed.
• B)Perform additional roll-forward or roll-back procedures for the period between the count date and balance sheet date.
• C)Unit cost records must be integrated with production accounting records.
• D)Inventory cannot be a material amount.

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