If a Client Company Performs Its Physical Inventory Counts on a Date

Multiple Choice

If a client company performs its physical inventory counts on a date other than year-end, auditors must verify that:

A) no shrinkage results.
B) there are no discrepancies between accounting records and goods on hand as of the date of the physical count.
C) the count data is rolled forward or rolled back to the financial statements based on transaction data between the dates of the physical count and year-end.
D) authorization controls applied during the period were sufficient to prevent losses between the dates of the physical count and year-end.