The Client Has a Perpetual Inventory System,and Takes an Inventory

Multiple Choice

The client has a perpetual inventory system,and takes an inventory count of 100 items every two weeks for comparison to the perpetual records.There are no plans to have a complete year-end physical count of inventory.How will the auditor conduct the audit of physical inventory?

A) Select an attribute sample of items to count at the year end for comparison to the perpetual records.
B) Select a dollar unit sample of items to count at the year end for comparison to the perpetual records.
C) Use roll-forwards to carry forward the inventory records from the cyclical counts for an attribute sample of inventory items.
D) Conduct test counts and compare the perpetual records with a cyclical count during the interim audit.