procedures is not directly relevant for auditors to verify the existence of inventory
The client recorded 100 Dell desktop computers in the inventory account on 30 June 2021. Each costs $2800. The auditor performed a physical count on 6 July 2021 and found 80 units in the warehouse. Which of the following follow-up procedures is not directly relevant for auditors to verify the existence of inventory at the financial year-end?
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Auditors enquire various warehouse staff about inventory disposals between 1 July and 6 July. |
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The auditor takes a sample of sales invoices and matches them to shipping documents. |
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For the missing inventory items without legitimate explanation, the auditor recommends the client adjust for the amount overstated. |
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The auditor could obtain an inventory movement register from the client warehouse manager to see if the client sold this model between 1 July and 6 July. |
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Auditors enquire the warehouse manager about inventory disposals between 1 July and 6 July. |
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