An auditor will usually trace the details of the test counts made during the observation of the physical inventory count to a final inventory schedule.This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are
A) Owned by the client.
B) Not obsolete.
C) Physically present at the time of the preparation of the final inventory schedule.
D) Included in the final inventory schedule.

Question

Quizplus · Accepted Answer

Tracing the details of test counts to the final inventory schedule provides evidence that items physically present and observed have been included in the final inventory count. Therefore, the correct answer is D - "Included in the final inventory schedule." The other choices are not necessarily confirmed by this audit procedure.

An Auditor Will Usually Trace the Details of the Test