The correct answers are: The auditors should review the inventory count instructions before the commencement of the inventory count; The auditors should perform test counts at the inventory count to ensure that counting procedures are being properly applied.

ISA 501 Audit evidence - specific considerations for selected items states that auditors perform test counts to ensure that counting procedures are being properly applied. Auditors should review the count instructions before the commencement of the count and inform management if they consider them to be inadequate for the purposes of the financial statements.

It is not always necessary to issue a modified opinion if the auditor does not attend the count, it may be possible to perform the count at another date and perform a roll-forward or a roll-back, for example. The responsibility for counting inventory is the responsibility of the company, not the auditors. If the auditors do not consider that the inventory count is being properly conducted, they should bring the matter to the attention of management immediately but they have no right to stop the count.