In observing the client's inventory at year-end,the auditor makes test counts that are later traced into the client's inventory compilation.

Name: In observing the client's inventory at year-end,the auditor makes test counts that are later traced into the client's inventory compilation.
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This is a standard audit procedure known as physical inventory observation and tracing of counts to the inventory compilation ensures the accuracy of inventory valuation on the balance sheet.

In Observing the Client's Inventory at Year-End,the Auditor Makes Test