CPA Aud Quiz
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PERFORMING FURTHER PROCEDURES AND OBTAINING EVIDENCE
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You are auditing a nonissuer distributor and attended the physical inventory count. You observed that count teams skipped sealed pallets and used quantities printed on shipping labels without opening them, and several pallets were located in a staging area labeled "Ready to Ship." Controls require opening pallets and counting contents, but the procedure was not followed. Based on the findings, which action should the auditor take?
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