An appropriate time to conduct a retail audit of a firm's accounting system is ________.
A) at the time of a complete physical inventory
B) during the peak sales period
C) when top management is unavailable
D) during an off-season

Question

Quizplus · Accepted Answer

Conducting a retail audit of a firm's accounting system during a complete physical inventory is the most appropriate time as it enables a thorough verification and reconciliation of the inventory records, which is an essential part of the auditing process. During peak sales period or off-season, the workload of the retail firm is likely to be high, making it difficult for them to devote enough resources and attention to the auditing process. Similarly, it is crucial to have top management involvement and participation during the audit process to ensure its effectiveness and accuracy, so conducting the audit when they are unavailable is not ideal.

An Appropriate Time to Conduct a Retail Audit of a Firm's