Question: During the observation of a client's physical inventory count, the auditor noted that the client had changed the numbering system used to identify inventory products.

During the observation of a client's physical inventory count, the auditor noted that the client had changed the numbering system used to identify inventory products. In your observations, you discovered several errors in the product numbers recorded on inventory tags and brought the errors to the attention of the supervisor, who corrected every one that you noted. The auditor also noted that the count of inventory items was highly accurate. How would these findings affect the year-end audit of inventory?

Step by Step Solution

3.44 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

There is a major problem with the identification of products for valuati... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

222-B-A-A-B-R (561).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!