Which of the Following Is the Best Audit Procedure for the Discovery

Multiple Choice

Which of the following is the best audit procedure for the discovery of damaged merchandise in a client's ending inventory?

A) Compare the physical quantities of slow-moving items with corresponding quantities of the prior year.
B) Observe merchandise and raw materials during the client's physical inventory count.
C) Review the management's inventory representation letter for accuracy.
D) Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.