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 make certain that consigned items from suppliers are included in physical inventory totals.
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.
Correct Answer:
Verified
Q3: The receiving department should accept only goods
Q4: An auditor suspects that certain client employees
Q8: A client uses a perpetual inventory
Q9: Auditors should not review the client's planning
Q10: For good internal control over purchase transactions,
Q13: A "bill and hold" scheme is most
Q14: A receiving department compares inventory items received
Q17: To measure how effectively a client employs
Q18: When the auditors cannot satisfy themselves as
Q19: Which of the following is an auditor
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