Which of these procedures would not be appropriate for an auditor in discharging his or her responsibilities concerning the entity's physical inventories, assuming that the inventory is held at one location?
A) obtaining written representation from the entity as to the existence, quality, and dollar amount of the inventory
B) relying on the internal auditor to observe the total inventory count
C) confirming the goods in the hands of public warehouses
D) none of the procedures would be appropriate

Question

Quizplus · Accepted Answer

While it is appropriate for the auditor to work with the internal auditors in the inventory count, solely relying on them to observe the total inventory count can be a risk for the auditor. The auditor should perform their own independent testing to obtain sufficient evidence. Therefore, option B is not an appropriate procedure for the auditor. Options A and C are appropriate procedures that the auditor can use. Option D is incorrect as all the procedures listed can be considered appropriate for an auditor in discharging their responsibilities concerning the entity's physical inventories.

Which of These Procedures Would Not Be Appropriate for an Auditor