Close to the end of the reporting period, the auditor needs to consider the extent of test counts relative to total inventory, and to review the recorded differencbetween test counts and inventory records over the year and the explanations of those differences.

Question

Quizplus · Accepted Answer

This statement is true. As the reporting period comes to a close, the auditor must review the extent of test counts in comparison to the entire inventory, as well as examine any discrepancies between test counts and inventory records that occurred throughout the year and the justifications provided for those variances.

Close to the End of the Reporting Period, the Auditor