Which of the following is not true relating to the auditors' observation of the client's physical inventory? A)The auditors should evaluate the client's planning of the physical inventory. B)The auditors should supervise the taking of the inventory. C)The auditors should evaluate the adequacy of the client's counting procedures. D)The auditors should take test counts of the client's inventory.

Question

Quizplus · Accepted Answer

The auditors should observe the physical inventory, but they should not supervise or participate in it. This is to maintain independence and objectivity in their audit work. The client should be responsible for the physical inventory, and the auditors should only observe and evaluate the process. A, C, and D are all true statements regarding the auditors' observation of the client's physical inventory.

Which of the Following Is Not True Relating to the Auditors