Audit procedures used in the observation of a client's physical inventory count are designed primarily to ________.
A) test and observe the client's physical count of inventory
B) independently verify the physical counts recorded by the client
C) assist the client in taking test counts of year-end inventory
D) determine whether inventory contains obsolete goods

Question

Quizplus · Accepted Answer

Audit procedures used in the observation of a client's physical inventory count are designed primarily to independently verify the physical counts recorded by the client. The auditor observes the client's physical count of inventory, and test counts may also be taken. However, the main purpose is to verify the accuracy of the client's count. The other options are not the primary focus of inventory observation.

Audit Procedures Used in the Observation of a Client's Physical