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Inventory Audit
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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