In the audit of inventory, the client is responsible for actually making and recording the count of physical inventory; the auditor's responsibility is to evaluate and observe the client's procedures and draw conclusions about the adequacy of the physical inventory.

Question

Quizplus · Accepted Answer

The statement accurately reflects the roles and responsibilities of the client and the auditor in the audit of inventory. The client has the primary responsibility for physically counting the inventory and recording the quantities and values, while the auditor evaluates and observes the client's procedures and tests the accuracy and completeness of the inventory records.

In the Audit of Inventory, the Client Is Responsible for Actually