Question: 4-25 Observing a customer's physical inventory is a mandatory audit procedure when it is possible for auditors to carry it out and when inventories are

4-25 Observing a customer's physical inventory is a mandatory audit procedure

when it is possible for auditors to carry it out and when inventories are material

to. Why is observation of the physical inventory a mandatory audit procedure? Explain

b. Under what circumstances is it impossible to observe it from the physical inventory

c. Why is the auditors' review of customer control of labeling important?

inventory during physical inventory observation? Explain

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