Choice "D" is correct. In order to determine whether the actual inventory on hand is reflected in the ending inventory balance by the client, the auditor would test the completeness of inventory. This is done in conjunction with inventory observation, through testing the physical inventory report by tracing test counts to the report to verify that reported inventory is complete. Choice "c" is incorrect.  The verification of legal right to the inventory is not a test that would satisfy this audit objective. Choice "a" is incorrect. Testing whether management properly valued its inventory would not satisfy the audit objective, but testing for completeness would. Choice "b" is incorrect. Testing for this management assertion would not satisfy the audit objective because inventory can be properly presented in the financial statements without the inventory amounts being accurate.