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Auditor need to understand the client's physical inventory control before inventory counting begins m. This understanding is necessary to evaluate the effectiveness of client procedures,
Auditor need to understand the client's physical inventory control before inventory counting begins m. This understanding is necessary to evaluate the effectiveness of client procedures, it also enables the auditor to provide constructive advice in advance. Obviously if the client's physical inventory count controls are inadequate, the auditor should spend more time ensuring that the physical counts are accurate. Auditing standards require auditors to assure themselves of the effectiveness of clients' methods of calculating inventory and their confidence in client representations of the quantity and physical condition of inventories. To fulfill this requirement the auditor must perform several activities, please state and explain the details
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