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Auditors obtain evidence about the inventory account through, among other procedures, observing the counting of inventory. What are some limitations observation has as an audit

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Auditors obtain evidence about the inventory account through, among other procedures, observing the counting of inventory. What are some limitations "observation" has as an audit procedure? The audit testing hierarchy is considered to be more effective and more efficient. Why? According to the text, what are the three functions of working papers

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