Which One of the Following Is the BEST Audit Procedure

Multiple Choice

Which one of the following is the BEST audit procedure for the discovery of damaged merchandise in a client's ending inventory?

A) Compare the physical quantities of slow- moving items with corresponding quantities of the prior year.
B) Review the management's inventory representation letter for accuracy.
C) Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.
D) Be alert for items that are located in inappropriate places while observing the client's physical inventory count.