Audit Evidence Is it Persuasive?

As a staff auditor you are asked to gather information about the existence of physical inventory.

1. Physical examination of inventory in warehouse.
2. Documented discussion with inventory control manager that the inventory agrees to the accounting records and is in saleable condition.
3. Observation of annual physical inventory count and a re-performance of a sample inventory counts.

• For each of the three types of audit evidence obtained, discuss whether the audit evidence is appropriate and sufficient. Explain with Real World /or Real Company examples.
• Describe how the use of audit data analytics might increase both the effectiveness and efficiency of the audit.