Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 23

Periodic or cycle counts of selected inventory items are made at various times during the year rather than via a single inventory count at year-end. Which of the following is necessary if the auditor plans to observe inventory at interim dates?
A) Complete recounts are performed by independent teams.
B) Perpetual inventory records are maintained.
C) Unit cost records are integrated with production-accounting records.
D) Inventory balances are rarely at low levels.