Which of the following statements concerning auditor observation of the auditee's physical inventory count is FALSE?
A)Tracing of items from the warehouse floor to the final inventory compilation,are performed test the completeness assertion.
B)Review of the count instructions is performed to assess client controls related to the inventory count.
C)If an auditor's expert is used during the count,it is the auditor who assumes responsibility for his/her work.
D)The auditor must be present for the full inventory count of all items,start to finish.

Question

Quizplus · Accepted Answer

While it is ideal for the auditor to be present for the full inventory count, it is not always possible or practical. In some cases, the auditor may observe a representative sample of items and use that as a basis for testing the inventory balance as a whole. Therefore, statement D is false.

Which of the Following Statements Concerning Auditor Observation of the Auditee's