Which of the Following Is a Condition Which Would Not

Multiple Choice

Which of the following is a condition which would not create a conducive situation for a client to take a physical inventory at an interim date before year-end?

A) The control risk over inventory is high.
B) The auditor will be able to review material transactions in the roll-forward period.
C) The auditor can effectively test the year-end balance through a combination of analytical procedures and selective testing of transactions between the physical count and the year-end.
D) The auditor reviews the intervening transactions for evidence of any manipulation or unusual activity.