To Ensure That a Client's Raw Materials, Work-In-Process, and Finished

Multiple Choice

To ensure that a client's raw materials, work-in-process, and finished goods inventories are physically protected from theft or damage, an auditor could perform a test of controls such as:

A) selecting a sample of inventory items from the inventory records and inspecting them for consistency with the category of records.
B) reviewing the company's inventory policies for adherence to GAAP.
C) observing the client's physical inventory count to assess whether the company's procedures are being followed.
D) touring the storage and production facilities and observe the security procedures in place.