- 4 Marks
AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements
Describe audit procedures to obtain sufficient evidence regarding inventory.
Question
ISA 501 – Audit Evidence – Specific Considerations for Selected Items deals with three specific items that may be contained within a set of general-purpose financial statements and for which the auditor may need to obtain sufficient appropriate audit evidence. It deals with specific considerations for inventory, litigation and claims, and segment information.
Required:
i) What should an auditor do to obtain sufficient appropriate audit evidence regarding the existence and condition of inventory where inventory is material to the financial statements? (2 marks)
ii) What should an auditor do when physical inventory counting is conducted on a date other than the date of the financial statements? (2 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit evidence, Audit Procedures, Inventory, ISA 501, Physical Counting
- Level: Level 3
- Topic: Types of Audit and Assurance Engagements
- Series: MAY 2020