Which of the following is the most appropriate potential reaction of the auditor to his assessment that the risk of material misstatement due to fraud is high in relation to existence of inventory?

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Q. Which of the following is the most appropriate potential reaction of the auditor to his assessment that the risk of material misstatement due to fraud is high in relation to existence of inventory?

(A) Visit location on surprise basis to observe test counts

(B) Request inventory count at a date close to year end

(D) Perform analytical procedures.

Correct Answer - Option(D)
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