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 the session 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
Course Content
Module 01
Introduction and Overview
Module 02
Identifying and Assessing RMM
Module 03
Audit Response
Module 04
Inventory Counts: Completeness and Existence
Module 05
Audit Evidence: Auditing Other Assertions (Accuracy, Cut-off, Valuation and Presentation)
Module 06
Bringing It All Together
Module 07
Resources