Physical observation of Inventory it is ordinarily necessary for the independent auditor to be present at the time of count and, by suitable observation, tests, and inquiries, satisfy himself respecting the effectiveness of the methods of inventory- taking and the measure of reliance which may be placed upon the clients representations about the quantities and physical condition of the inventories Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc.Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. … it is ordinarily necessary for the independent auditor to be present at the time of count and, by suitable observation, tests, and inquiries, satisfy himself respecting the effectiveness of the methods of inventory￾taking and the measure of reliance which may be placed upon the client’s representations about the quantities and physical condition of the inventories Physical Observation of Inventory