If the auditor is appointed after the year-end of the client,the auditor
A)should qualify the audit opinion for the inventory balance and cost of sales.
B)could attend a current perpetual inventory count and roll backward with the records.
C)should do an inventory count as soon as he is appointed.
D)will inquire with management about the inventory count performed at year-end.

Question

Quizplus · Accepted Answer

If the auditor is appointed after the year-end of the client, they can attend a current perpetual inventory count and roll backward with records to gain sufficient audit evidence. Doing an inventory count as soon as they are appointed may not be feasible or practical. Inquiring with management about the inventory count may not provide sufficient evidence. Qualifying the audit opinion for inventory balance and cost of sales is not necessary if the auditor can obtain sufficient evidence through alternative procedures such as attending a current perpetual inventory count.

If the Auditor Is Appointed After the Year-End of the Client,the