Inventory is a complex accounting and auditing area for a number of reasons. Additionally, there are a number of fraud risks associated with inventory. This question relates only to the complexity of accounting for and auditing inventory.

Select all items that relate directly to accounting for and auditing inventory. Check all that apply.

a. Inventory accounts typically experience a high volume of activity.

b. Inventory is easily transportable.

c. Schemes to classify expenses as assets.

d. Inventory is often returned by customers, so care must be taken to separately identify returned merchandise, check it for quality, and record it at net realizable value.

e. Identifying obsolete inventory and applying the lower of cost or market principle to determine valuation are difficult.

f. Inventory may become obsolete because of technological advances even though there are no visible signs of wear.

g. Executives misusing travel and entertainment accounts and charging them as company expense.

h. Employee theft of inventory.

i. Inventory accounts may be valued according to various accounting valuation methods.

j. Inventory often exists at multiple locations with some locations being remote from the company's headquarters.

k. A great variety (diversity) of items exists in inventory.

l. Inventory often includes a variety of types of products; the auditor must possess and apply significant knowledge about the business in order to address obsolescence and valuation questions.