When There Are No Perpetual Inventory Files and Inventory Is

Multiple Choice

When there are no perpetual inventory files and inventory is material:

A) an audit cannot be performed, so the auditor must issue a disclaimer.
B) a physical inventory should be taken by the client near year-end.
C) the auditor will have to perform the inventory count and determine valuation.
D) the auditor need not observe inventory counts but must do test counts.