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You have been assigned to carry out a stock take in a company. Your Audit Supervisor has given you with an audit programme.
As part of a briefing session to your juniors, you are required to explain the specific audit objective of each of the tests below and to which assertion does it relate.
(a) Observe client physical inventory count
(i) make test count.
(ii) look for indications of slow moving , damage or obsolete inventory.
(iii) account for all inventory tags and count sheets used in making inventory count.
(b) Test clerical accuracy of inventory listing
(i) Recalculate extensions and footing.
(ii) Trace test count to listing.
(iii) Vouch items on listing to inventory tags and count sheet
WHAT OF COST OF JOURNAL ENTRY?
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