Risks with physically accounting for inventory

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Reference no: EM1351018

You are responsible for auditing a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor keeps its inventory in its own distribution center and in two public warehouses. An electronic inventory file is maintained on a computer disk, and at the end of each business day the file is updated. How would you tackle the challenge of the physical inventory observation? List the risks that you see the auditor will face and how they would manage those risks.

Reference no: EM1351018

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