When a physical count of inventory is permitted at an interim date,the auditor observes it at that time,and also tests the perpetual inventory for transactions
A)throughout the year.
B)which are a representative sample of the period under audit.
C)from the date of the count to year-end.
D)from the date of the count to the end of the audit field work.

Question

Quizplus · Accepted Answer

When a physical count of inventory is permitted at an interim date, the auditor observes it at that time and also tests the perpetual inventory for transactions from the date of the count to year-end. This is to ensure that the inventory records accurately reflect the actual inventory on hand at year-end.

When a Physical Count of Inventory Is Permitted at an Interim