Which of the following audit steps for observing a client's inventory count are to be performed after the physical count is complete?
A) Obtain the number of the receiving report and shipping document for the last item of the period and check to see that the inventory is properly included or excluded.
B) Inquire of client's management about whether any inventory owned by others is held on consignment.
C) Trace items selected and included in audit test recounts into the client's inventory records.
D) Check for the sequential numbering of tags used in the physical counts, including identification of all used and unused numbers.

Question

Quizplus · Accepted Answer

Tracing items selected in the audit test recounts into the client's inventory records is a post-count observation that helps ensure proper recording of inventory. Option A is performed during the physical count process, while options B and D are pre-count observations that should be performed before the physical count.

Which of the Following Audit Steps for Observing a Client's