A public accountant observes his client's physical inventory count on December 31.There are eight inventory-taking teams and a tag system is used.The public accountant's observation normally may be expected to result in detection of which of the following inventory errors?
A)The inventory takers forgot to count all the items in one room of the warehouse.
B)An error is made in the count of one inventory item.
C)Some of the items included in the inventory had been received on consignment.
D)The inventory omits items on consignment to wholesalers.

Question

Quizplus · Accepted Answer

The public accountant's observation can help detect if the inventory takers forgot to count all the items in one room, as they are physically present to oversee the counting process.

A Public Accountant Observes His Client's Physical Inventory Count on December