Which statement is most correct?
A) In observing physical inventory, the auditor has a responsibility to both take and supervise the taking of inventory.
B) In observing physical inventory, the auditor has no responsibility to take or supervise the taking of inventory.
C) In observing physical inventory, the auditor is only responsible for supervising the taking of inventory.
D) In observing physical inventory, the auditor is responsible for the taking of inventory.

Question

Quizplus · Accepted Answer

In observing physical inventory, the auditor's role is to observe the client's personnel count the inventory to obtain audit evidence regarding the existence and condition of the inventory. The auditor does not take or supervise the taking of inventory, as their primary function is to independently verify the process and accuracy of the inventory count conducted by the client.

Which Statement Is Most Correct