Audit Procedures during Attendance at the Inventoru Count

Question 1

What do audit procedures include (client staff)

Answer 1

Observe whether client’s staff are following inventory count is complete and accurate

Question 2

What do audit procedures include (test counts existence completeness)

Answer 2

Perform test counts to ensure procedures and internal controls are operating effectively, and gain evidence over the existence and completeness of inventory

Question 3

What do audit procedures include (procedures valuation)

Answer 3

Ensure that procedures for identifying damaged, obsolete and slow-moving inventory operate effectively to confirm valuation of inventory

Question 4

What do audit procedures include (inventory’s condition)

Answer 4

Obtain information about inventory’s condition, age and usage

Question 5

What do audit procedures include (work-in-progress)

Answer 5

Obtain information concerning the stage of completion of work-in-progress

Question 6

What do audit procedures include (third parties overstated)

Answer 6

Confirm that inventory held on behalf of third parties is separately identified and accounted for to ensure inventory is not overstated

Question 7

What do audit procedures include (GRN and GDN)

Answer 7

Obtain copies of last GRN and GDN to confirm cut-off of inventory

Question 8

What do audit procedures include (amendment)

Answer 8

Conclude whether any amendment is necessary to subsequent audit procedures

Question 9

What do audit procedures include (overall impression)

Answer 9

Gain an overall impression of the levels and values of inventories held to judge whether inventory figure in FSs appears reasonable