Which of the following is the most appropriate potential reaction of the auditor to his assessment that the risk of material misstatement due to fraud is high in relation to existence of inventory?
Options:
a) Visit location on surprise basis to observe test counts b) Request inventory count at a date close to year-end c) Vouch goods sent on approval very carefully d) Perform analytical procedures. |
The Correct Answer Is:
a) Visit location on surprise basis to observe test counts