CAS for audit procedures for inventory indicate that the auditor
A)must count the inventory.
B)must be present at the inventory count and must receive adequate documentation from the client regarding the effectiveness of inventory-taking.
C)must be present at the inventory count and evaluate the methods followed in the determination of quantities and values.
D)need not be present at the count but must review the methods followed in the determination of quantities and values.

Question

Quizplus · Accepted Answer

The correct choice is C because according to CAS (Canadian Auditing Standards), the auditor must be present at the inventory count to observe and evaluate the methods followed by the entity in determining the quantities and values of inventory, ensuring they comply with the applicable financial reporting framework. This presence allows the auditor to assess the effectiveness of the inventory counting procedures and the accuracy of the inventory records.

CAS for Audit Procedures for Inventory Indicate That the Auditor