Question 9. Which of the following statements regarding inventory counts is correct?

Where inventory is material, the auditor is required to attend the inventory count unless this is impracticable

When attending an inventory count, the auditor only observes the counting and does not perform any testing

There is no legal requirement for an annual inventory count to take place

Failing to perform an inventory count at the year end, when inventory is managed using a perpetual system, leads to a high risk of material misstatement of inventory