If an auditor was not present at a new client's inventory count,the auditor has no obligation to test the inventory.

Question

Quizplus · Accepted Answer

The auditor still has an obligation to test the inventory, but may need to rely on other audit procedures to gather sufficient evidence about the inventory balance. This could include reviewing documentation related to inventory transactions, assessing the reliability of the client's inventory counting procedures, and performing analytical procedures to compare inventory levels to historical trends or industry benchmarks.

If an Auditor Was Not Present at a New Client's