Assets classified as inventory vary widely with the nature of the entity and industry. Depending on the complexity of the inventory and the related pricing model, the risk of material misstatement will vary widely as well. This module primarily focuses on performing the inventory observation while introducing other risk concepts related to inventory.
Major Topics:
- Typical inventory observation procedures and special considerations
- Handling various inventory observation real-life scenarios
- High level overview of valuation and pricing methods
- Key controls related to inventory
Prerequisites
No Advanced Preparation or Prerequisites are needed for this course.
Designed For: Accountants responsible for auditing inventory and performing inventory observations.
Learning Objective
- Identify and discuss typical audit risks and special audit considerations related to inventory.
- Discover and describe common inventory observation audit procedures.
- Explore and explain key controls related to inventory.
- Recognize and compare inventory pricing options at a high level.
Last updated/reviewed: March 18, 2024
(1) Reviews
(33 rating)
This course provided a comprehensive and highly practical deep dive into inventory auditing, including valuation techniques, assertion testing, and the nuances of physical count procedures. It was especially valuable in teaching how auditors apply concepts like existence, rights and obligations, valuation and allocation, and completeness in real-world settings.
Lesson Questions and Answers0 Questions
INTRODUCTION AND OVERVIEW
- Learning Objectives and Introduction to Auditing Inventory 7:40
- Inventory Observation Procedures 12:44
- Inventory Observation Procedures Cont'd 10:44
- Remote Auditing 3:50
- Case Study-Results of Inventory Observations 13:10
- Year End Audit Procedures 16:50
- Existence and Completeness of Inventory 10:44
- Pricing and Valuation 12:50
- Pricing and Valuation Cont'd 8:35
- Key Controls Over Inventory 3:53
CONTINUOUS PLAY
Supporting Materials
- Slides: Auditing Inventory - Performing Required Observations and Other Common Procedures PDF
- Auditing Inventory - Performing Required Observations and Other Common Procedures Glossary/Index PDF
Review And Test
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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