An auditor is unable to observe the physical count of inventory. Which of the following would not be an appropriate alternate procedure?
A. Perform test counts to items in inventory.
B. Apply procedures to transactions occurring between the count date and the date of the financial statements.
C. Review shipping terms for all inventory in transit on the balance sheet date.
D. Evaluate internal controls related to the maintenance of perpetual inventory records.
Correct answer is Option C. Review shipping terms for all inventory in transit on the balance sheet date..
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