Auditing Inventory

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Overview

1.0 Credits
ONLINE

The inventory account balance is typically as large as or larger than accounts receivable. Understanding not only the types of products your client manufactures but also what goes into making the products is fascinating and indispensable to identifying risk of material misstatement. It is essential to understand how a company makes its money to effectively perform an audit. At the core of this understanding is knowing what goes into products and how the products are assembled. By examining inventory costing, observations, and other necessary audit procedures, this CPE course provides the knowledge necessary for a new staff member to successfully audit inventory.

Objectives

Recall the audit objectives and related assertions in the inventory area. Identify the steps for risk assessment and identify the common risks found in the accounts receivable inventory area. Identify basic processes and controls over the inventory area and identify weaknesses and possible solutions. Recall the common audit procedures surrounding inventory and demonstrate mastery of those procedures through a commonly encountered audit situation.

Major Topics

Relevant professional standards related to auditing inventory Audit objectives and assertions for inventory Risk assessment for inventory Inventory observation Application of guidance and an inventory case study

Designed For

Recently onboarded staff First-year staff Firms that want consistent training and level setting
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