Tests of inventory controls often involve _______.

Question

Quizplus · Accepted Answer

Tests of inventory controls typically involve observing the client's inventory controls and also reperforming those controls to ascertain whether they are operating effectively as intended. This helps the auditor understand and evaluate the efficiency and effectiveness of the client's inventory management processes. Option B is incorrect because observing the auditor's own controls is not relevant or necessary in this context. Option C is incorrect because it is unlikely that the auditor would perform the client's controls themselves. Option D may be a part of inventory testing, but it is not the main focus of tests of inventory controls.

Tests of Inventory Controls Often Involve _______