It is frequently possible to test the physical inventory prior to the balance sheet date when:
A)there are accurate perpetual inventory master files.
B)year-end sales are small.
C)the internal control system is no better at year-end than at an earlier point in time.
D)the client counts inventory at interim dates.

Question

Quizplus · Accepted Answer

When there are accurate perpetual inventory master files, it is possible to test the physical inventory prior to the balance sheet date because the records are reliable and can be reconciled with the physical count at any time.

It Is Frequently Possible to Test the Physical Inventory Prior