Auditors often observe the counting of their clients' inventories. Reply as to whether the following statements are true or false with respect to the inventory observation.

With strong internal control, the inventory count may be at the end of the year or at other times.

When a client has many inventory locations, auditors ordinarily need not be present at each location.

All auditor test counts must be documented in the working papers.

Auditors' observation of the counting of their clients' inventories addresses the existence of inventory, and not the completeness of the count.

When the client manufactures a product, direct labor and overhead ordinarily become a part of inventory item costs.

Inventory items present as "consigned in$"$ should not be included in the clients' inventory value.

True

Auditor recording of test counts ordinarily replaces the need for client "tagging" of inv$$ntory$.$

True

Ordinarily, an auditor need not count all items in the inventory.

False

At the completion of the count, an auditor will ordinarily provide the client with copies of his or her inventory test counts to help assure inventory accuracy.

False