How Does the Auditor Gather Evidence During the Physical Inventory

Multiple Choice

How does the auditor gather evidence during the physical inventory count?

A) The auditor determines that the items on hand that are not owned by the client are counted.
B) The auditor performs test counts at the same time the client is counting the inventory.
C) Management observes that all inventory has been tagged and counted.The auditor verifies that management has performed this task.
D) The auditor observes that client personnel are performing test counts in the areas where they are most familiar with the inventory.