Q. Which of the following statement is not true regard to auditor’s attendance atstock taking? (Solved)
1. Auditor should attend physical stock taking only if inventory is material
2. Auditor may not attend physical verification of stock by management, if he does not find it appropriate to rely on it
3. If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it
4. 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
- c. If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it