Final answer:
Auditors must record test count details in their working papers to cross-verify the client's inventory listing, which is true. Proper documentation is essential for audit accuracy and verification.
Step-by-step explanation:
The statement is indeed accurate. Auditors are obligated to meticulously document the specifics of their test counts in the audit working papers as a fundamental aspect of ensuring the reliability and precision of their audit work. These recorded details play a crucial role in cross-verifying the accuracy of the client's completed physical inventory listing.
For instance, when auditors conduct inventory count tests through sampling, thorough documentation becomes essential for later verification of the inventory listing against the actual inventory. Properly recorded details serve as a robust form of evidence, allowing for transparency and traceability in the audit process. This documentation not only supports the auditor's findings but also facilitates the review and assessment of audit procedures by external parties, reinforcing the integrity and credibility of the audit process.