As part of the process of observing a client's physical inventories, an auditor should be alert to

As part of the process of observing a client's physical inventories, an auditor should be alert to

A. The inclusion of any obsolete or damaged goods.
B. Any change in the method of pricing from prior years.
C. The existence of outstanding purchase commitments.
D. The verification of inventory values assigned to goods in process.

Correct answer is Option A. Explanation: As part of the process of observing a client's physical inventories, an auditor should be alert to the inclusion of any obsolete or damaged goods.