You’ve been assigned to perform a stock take in company. Your Audit Supervisor has provided you with the audit programme.
As part of briefing session to your juniors, you’re required to describe the specific audit objective of each of tests below and to which assertion does it relate.
(a) Observe client physical inventory count
(i) Make test count.
(ii) Look for indications of the slow moving, obsolete or damage inventory.
(iii) Account for all count sheets and inventory tags employed in making inventory count.
(b) Test clerical accuracy of the inventory listing
(i) Refind out footing and extensions.
(ii) Trace test count to listing.
(iii) Vouch items on listing to count sheet and inventory tags.