Periodic or cycle counts of selected inventory items are made at various times during the year rather than via a single inventory count at year-end. Which of the following is necessary if the auditor plans to observe inven- tory at interim dates?

a. Complete recounts are performed by independent teams.

b. Perpetual inventory records are maintained.

c. Unit cost records are integrated with production-accounting records.

d. Inventory balances are rarely at low levels. P-963