A Client Maintains Perpetual Inventory Records in Both Quantities and Dollars.If

Multiple Choice

A client maintains perpetual inventory records in both quantities and dollars.If the assessed level of control risk is high,an auditor would probably ________.

A) insist that the client perform physical counts of inventory items several times during the year
B) apply gross profit tests to ascertain the reasonableness of the physical counts
C) increase the extent of tests of controls of the inventory cycle
D) ask the client to schedule the physical inventory count at the end of the year and with a large number of test counts