A client maintains perpetual inventory records in both quantities and dollars.If the assessed level of control risk is high, an auditor would probably:
A)insist that the client perform physical counts of inventory items several times during the year.
B)apply gross profit tests to ascertain the reasonableness of the physical accounts.
C)increase the extent of tests of controls of the inventory cycle.
D)request the client to schedule the physical inventory count at the end of the year.

Question

Quizplus · Accepted Answer

When control risk is high, the auditor would likely request the client to schedule the physical inventory count at the end of the year to ensure the accuracy of the inventory records and to perform substantive testing.

A Client Maintains Perpetual Inventory Records in Both Quantities and Dollars.If