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week 4 d1

by | May 24, 2022 | Uncategorized

by | May 24, 2022 | Uncategorized

week 4 d1

 

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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