Under which of the following conditions may an auditor's observation procedure for inventory be performed during or after the end of the period under audit?

Under which of the following conditions may an auditor's observation procedure for inventory be performed during or after the end of the period under audit?

A. When the client maintains periodic inventory records.
B. When the auditor finds minimal variations in client records and test counts in prior periods.
C. When total inventory has not varied more than 5% in the last five years.
D. When well-kept perpetual inventory records are checked by the client periodically by comparisons with physical counts.

Correct answer is Option D. Explanation: When well-kept perpetual inventory records are checked by the client periodically by comparisons with physical counts that conditions it may an auditor's observation procedure for inventory be performed during or after the end of the period under audit.