When well-maintained perpetual inventory records are verified periodically by the client by comparisons with physical counts, what is the appropriate timing of the auditor's observation procedures?
A) Either during the period under audit or at the balance sheet date.
B) Either during or after the end of the period under audit.
C) Only at the balance sheet date.
D) Only during the end of the period under audit.

Question

Quizplus · Accepted Answer

The auditor's observation procedures can be performed either during or after the end of the period under audit to ensure that the physical counts are accurately reflected in the financial records, providing flexibility in timing to match the audit plan and objectives.

When Well-Maintained Perpetual Inventory Records Are Verified Periodically by the Client