Inventory held by third parties

Question 1

When does auditor obtain sufficient appropriate audit evidence?

Answer 1

Where entity has inventory that is held by third parties and which is material to financial statements

Question 2

Where entity has inventory that is held by third parties and which is material to financial statements (confirmation)

Answer 2

Direct confirmation from third-party regarding quantities and conditions

Question 3

Where entity has inventory that is held by third parties and which is material to financial statements (inspection)

Answer 3

Inspection or other appropriate audit procedures