The auditor generally decides whether the inventory count can be taken before year-end primarily on the basis of
A) audit efficiency.
B) accuracy of the perpetual inventory master files.
C) client convenience.
D) audit staff availability.

Question

Quizplus · Accepted Answer

The auditor's primary concern in deciding whether inventory count can be taken before year-end is the accuracy of the perpetual inventory master files. This is because the accuracy of these files helps in determining the completeness and accuracy of inventory balances, which is essential for the preparation of year-end financial statements. Audit efficiency, client convenience, and audit staff availability are secondary factors in this decision-making process.

The Auditor Generally Decides Whether the Inventory Count Can Be