From Count to Conclusion: Auditing Inventory

Overview

Inventory can be a complex and judgemental area of the audit due to many factors including the type of inventory and the costing methodology used. From goods held for resale and raw materials to work-in-progress and finished goods, auditors must perform audit procedures to address existence, completeness, costing, and valuation, always using professional skepticism. This session provides auditors with the knowledge and practical skills to audit inventory effectively.

Through a mix of practical application, detailed case studies, and real-world scenarios, participants will learn how to apply the requirements of CAS 500 and CAS 501. From risk assessment procedures through to designing appropriate risk responses, auditors will develop skills to plan and perform inventory counts, test costing and WIP effectively and perform other procedures to address accuracy, valuation and cut-off.

Learning Objectives

By the end of this course, participants will be able to:

• Appreciate the requirements of CAS 501
• Understand key risks and audit assertions related to inventory
• Plan and observe inventory counts to test completeness and existence
• Design and perform audit procedures to address other assertions
• Document conclusions effectively

Verifiable CPD

2.0 hour