Which of the following is most likely to be a
response to the auditor's assessment that
the risk of material misstatement due to
fraud for the existence of inventory is high?
a. Observe test counts of inventory at
certain locations on an unannounced
basis.
b. Perform analytical procedures rather than
taking test counts.
c. Request that inventories be counted prior
to year end.
d. Request that inventory counts at the
various locations be counted on different
dates so as to allow the same auditor to
be present at every count
response to the auditor's assessment that
the risk of material misstatement due to
fraud for the existence of inventory is high?
a. Observe test counts of inventory at
certain locations on an unannounced
basis.
b. Perform analytical procedures rather than
taking test counts.
c. Request that inventories be counted prior
to year end.
d. Request that inventory counts at the
various locations be counted on different
dates so as to allow the same auditor to
be present at every count