In companies where inventories are at multiple locations, the auditor's observations ordinarily should include:
A) all inventory locations.
B) a random sample of locations.
C) several inventory locations picked by the auditor.
D) a representative sample of locations.
E) all significant inventory locations.

Question

Quizplus · Accepted Answer

The auditor should observe all significant inventory locations to ensure the accuracy and completeness of the inventory records and to assess the risk of material misstatement.

In Companies Where Inventories Are at Multiple Locations, the Auditor's