In an audit where there is a heightened risk of fraud related to inventory, the auditor may want to observe all inventory locations simultaneously.

Question

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Observing all inventory locations simultaneously can help the auditor detect any irregularities or discrepancies in inventory records as well as prevent any manipulation or theft of inventory. Therefore, it is a common practice to minimize the risk of fraud related to inventory.

In an Audit Where There Is a Heightened Risk of Fraud