Reference no: EM133014239

Question - You, an audit staff of SGV, were assigned with others to audit ABC Company. You were able to observe the conduct of the inventory count and inspection of PPE. You had prepared the necessary reconciliations between the books and actual count, and the lapsing schedules. The said reports were submitted and accepted by the audit team lead and proposed adjusting journal entries had been recommended and accepted by the client. Before the release of financial statements, you discovered that the entity has inventory and property items that are located offsite not considered during the count because of the company's failure to disclose these items. As the auditor what measures will you undertake to rectify this issue?

You were assigned to audit DEF Company for the fiscal year ended March 31, 2021. You noticed that every end of a period, material transfers of inventory were made between DEF Company and XYZ Company, with terms beyond the standard approved credit. What audit procedures will you conduct in this situation?