Inventory Observation

Auditors often observe the counting of their clients inventories. Reply as to whether the following statements are correct or incorrect 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. ________________

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

Inventory items present as consigned in should not be included in the clients inventory value. ____________

Auditor recording of test counts ordinarily replaces the need for client tagging of inventory.

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

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. _______________