Inventory Is Often a Significant Part of a Company's Current

Multiple Choice

Inventory is often a significant part of a company's current assets. Because of its importance,

A) auditors are required by auditing standards to observe the client taking a physical inventory count.
B) price tests must be performed to verify whether the physical counts were correctly summarized.
C) companies are required to use perpetual inventory systems.
D) auditors are required by auditing standards to take the physical inventory for the client.