If attendance at physical inventory counting is impracticable,the auditor must
A)identify the locations of the inventory and amounts of inventory at each location.
B)evaluate whether the involvement of specialists is needed.
C)use alternative audit procedures to obtain sufficient appropriate evidence regarding the existence and condition of the inventory.
D)review the client's plans for taking inventory,including the process to count,control inventory tags or count sheets,the procedures for identifying obsolete items during the count,procedures for controlling the movement of inventory during the count,and the procedures for controlling shipping and receiving during the count.

Question

Quizplus · Accepted Answer

If attendance at physical inventory counting is impracticable, the auditor must use alternative audit procedures to obtain sufficient appropriate evidence regarding the existence and condition of the inventory. While identifying the locations of the inventory and amounts of inventory at each location, evaluating whether the involvement of specialists is needed, and reviewing the client's plans for taking inventory are important steps, none of these alternatives can provide sufficient appropriate evidence alone without using alternative audit procedures. Therefore, option C is the best choice.

If Attendance at Physical Inventory Counting Is Impracticable,the Auditor Must