Reply as to whether each of the following comments relating to inventory during a financial statement audit is correct or incorrect.

Correct/Incorrect Statement Inventory items "consigned in" should be included in the client's inventory totals. With strong internal control an inventory count may be performed prior to year-end. Generally accepted auditing standards require that the auditor be present at each location the client maintains inventory. Auditors must count all inventory items during the inventory count. The inventory of a manufacturing client will include direct labor, direct materials, and overhead components Inventory is ordinarily valued at the lower of cost or market. Ordinarily, the auditors will leave a copy of all their counts with the client so the client can correct misstatements. Every auditor test count must be documented. Auditors' observation of a client's counting of inventories ordinarily addresses the existence of inventory more than its completeness. 10. The client need not count every item. 5