An auditor is planning the substantive procedures that will be performed on the client's inventory. Which of the following is a correct statement regarding inventory observation? The auditor need not observe the client's physical count of material inventory held in public warehouses. If the auditor is unable to observe the client's physical count of inventory, a scope limitation must be reflected in the audit report. 0 If it is impractical to observe the physical count of inventory, alternative procedures may be used. The observation of physical counts of well-kept perpetual inventories can be done any time prior to the date of the financial statements without a need for further follow up by the auditor