There must be a periodic physical count by the client of the inventory items on hand
A) only if the client uses the LIFO method.
B) only if the client uses a lower-of-cost-or-market method.
C) regardless of the client's inventory valuation method.
D) only if the client uses either the LIFO or FIFO method.

Question

Quizplus · Accepted Answer

The periodic physical count of inventory is a fundamental internal control procedure that helps ensure the accuracy of the inventory balance reported in the financial statements. It is necessary regardless of the inventory valuation method used by the client.

There Must Be a Periodic Physical Count by the Client