10. The audit strategy that would be the most appropriate when an auditor has decided on a substantive approach is to determine inventory quantity by a) physical count at or within a few days of balance sheet date. b) physical count near balance sheet date, adjusted by reference to perpetual records. c) reference to perpetual records, without a physical count at or near balance sheet date. d) none of the above 11. Cyclical inventory counts differ from full inventory counts in which way? a) cyclical inventory counts are performed at the balance sheet date. b) cyclical inventory counts are only performed by internal audit C) cyclical inventory counts may involve counting only a portion of inventory items. d) they differ in all the above ways