Inventory - part 1
You'll learn how to design and execute audit procedures for inventory, one of the highest-risk areas in audit. This lesson covers the key risks auditors face with inventory (overstatement of quantity and value), how to plan and observe physical counts effectively, and how to test for both existence and completeness.
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In this lesson
- 0:00 Audit procedures and obtaining evidence
- 1:02 Understanding inventory risks and evidence
- 2:03 Inventory overstatement risks explained
- 5:03 Planning and observing inventory counts
- 8:00 Conducting effective inventory count procedures
- 10:01 Finalising inventory audit work
About this lesson
You'll build a practical toolkit for tailoring procedures to different business types—from manufacturing to retail—and understand why auditor attendance at inventory counts is essential when inventory is material to the financial statements.
Duration: 11m
Transcript
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