An audit team has concluded that inventory is highly susceptible to misappropriation and that a potential misstatement

An audit team has concluded that inventory is highly susceptible to misappropriation and that a potential misstatement would be material to the financial statements. How should the audit team address the audit procedures to the increased risk?

A. Review the client's control procedures over the safeguarding of inventory, and perform a physical inventory count on the last day of the current year.
B. Review the client's control procedures over the safeguarding of inventory, incorporate the use of substantive analytical procedures, and develop an expectation.
C. Review the client's control procedures over the safeguarding of inventory, but do not modify substantive procedures over inventory
D. Review the client's control procedures over the safeguarding of inventory, and perform physical inventory counts throughout the current year.

Correct answer is Option A. Review the client's control procedures over the safeguarding of inventory, and perform a physical inventory count on the last day of the current year.