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 the end of the accounting period.
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.