Which of the following is not a standard procedure that the auditor normally should follow in the observation of inventory at year-end?
A)Observe the client taking inventory.
B)Make selected test counts and trace into client's inventory compilation.
C)Look for slow-moving,obsolete,or damaged inventory.
D)Review disclosure of inventory valuation.

Question

Quizplus · Accepted Answer

Reviewing the disclosure of inventory valuation is not typically part of the physical inventory observation process. The auditor's role during inventory observation primarily involves physically observing the inventory count, making test counts, and evaluating the condition of inventory to ensure it is properly recorded and valued. Reviewing disclosure of inventory valuation is more related to the audit procedures performed during the review of financial statements, not the physical observation of inventory.

Which of the Following Is Not a Standard Procedure That