You Are Auditing the Inventory Account and Are Concerned About

Multiple Choice

You are auditing the inventory account and are concerned about the possibility of an inventory overstatement. What is the best audit procedure to detect damaged inventory?

A) Observe the condition of inventory during the client's physical count.
B) Compare the condition of inventory from the previous year's count to the current year.
C) Compare inventory turnover from the previous year's inventory to the current year's inventory.
D) Reconcile the inventory counts to the cost accounting records.