19 Apr Inventory Audit [WLOs: 1, 2] [CLOs: 1, 2, 3, 4] Prior to beginning work on this discussion forum, read Chapters 12 and 13 in the course textbook.
Inventory Audit [WLOs: 1, 2] [CLOs: 1, 2, 3, 4]
Prior to beginning work on this discussion forum, read Chapters 12 and 13 in the course textbook.
Observation of a client’s inventory is a mandatory audit procedure. Address the following in your discussion post:
- What part should the auditors play in planning the physical inventory?
- Describe the procedures performed by the auditors during their observation of a client’s physical inventory.
- Why do the auditors document their inventory test counts in their working papers?
- Why are the auditors concerned with detecting damaged and obsolete goods?
- How do the auditors test for damaged goods in the client’s inventory?
- How do the auditors test for obsolete goods in the client’s inventory?
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