All of the Following Are Required by the Auditor Before

Multiple Choice

All of the following are required by the auditor before allowing the client to take inventory before year-end except which one?

A) Absence of "red flags".
B) Internal control is weak.
C) The auditor can effectively test the year-end balance through a combination of analytical procedures and selective testing of transactions between the physical count and the year-end.
D) The auditor reviews the intervening transactions for evidence of any manipulation or unusual activity.