If inventory located off the client's premise,the auditor might confirm the amount with the custodian to satisfy evidence requirements.

Question

Quizplus · Accepted Answer

If the inventory is located at a third-party location, such as a warehouse or a consignment location, the auditor might confirm the amount with the custodian to satisfy evidence requirements. This is because the client may not physically control the inventory at these locations and may rely on the custodian to provide accurate information about the inventory.

If Inventory Located Off the Client's Premise,the Auditor Might Confirm