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Q. |
Which of the following statement is not true regard to auditor’s attendance at stock taking? |
A. | Auditor should attend physical stock taking only if inventory is material |
B. | Auditor may not attend physical verification of stock by management, if he does not find it appropriate to rely on it |
C. | If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it |
D. | The primary objective of an auditor’s observation of an entity’s observation of an entity’s stock take is to obtain direct knowledge that the stock and has been property counted |
Answer» C. If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it |
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