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The existence of an adequate storeroom with a competent custodian in charge results in the orderly ...

The existence of an adequate storeroom with a competent custodian in charge results in the orderly storage of inventory. It can protect inventory from theft and misuse. How would the auditor assess these controls? Using
A) observation during the audit and inquiry of the accounting staff.
B) inquiry of the accounting staff and inspection of theft statistics.
C) observation during the inventory count and inquiry of inventory personnel.
D) inspection of inventory damage statistics and inquiry of inventory personnel.

Textbook

Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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