The auditor was unable to observe the physical count of inventory. The client uses a...
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Accounting
The auditor was unable to observe the physical count of inventory. The client uses a perpetual inventory system. Control risk was assessed as high. What should the auditor do?
A.
Issue a qualified opinion on the financial statements.
B.
Vouch inventory purchases and sales to source documents as an alternative procedure.
C.
Issue an adverse opinion on the financial statements.
D.
Issue an unqualified opinion with an explanatory paragraph explaining the issue.
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