Question

Explain points The auditor should perform the following during planning stages of an inventory auditing

Answer 1

Answer:

Here are some of the inventory audit procedures that they may follow:

Cutoff analysis. ...

Observe the physical inventory count. ...

Reconcile the inventory count to the general ledger. ...

Test high-value items. ...

Test error-prone items. ...

Test inventory in transit. ...

Test item costs. ...

Review freight costs.