Final answer:
Auditors are responsible for observing the client counting inventory, inspecting the inventory for damage, and evaluating the client's internal controls. Making test counts is not part of auditors' responsibilities.
Step-by-step explanation:
When a client counts its inventory, there are certain responsibilities that auditors have. One of these responsibilities is to observe the client counting the inventory. This helps ensure that the client is accurately counting all the items in their inventory. Another responsibility of auditors is to inspect the inventory for any damage or obsolescence. This helps them assess the value of the inventory and determine if any adjustments are needed. Additionally, auditors may evaluate the client's internal controls over inventory. This includes assessing the client's inventory management system and procedures to ensure they are effective in preventing errors or fraud.
However, auditors are not responsible for making test counts themselves. This task is usually performed by the client's personnel. Auditors may review and test the client's test counts to ensure their accuracy, but the actual process of making test counts is not part of auditors' responsibilities.