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Auditors are required to understand the client's industry and business but may not be experts in identifying the quantity and value of certain inventory items

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Auditors are required to understand the client's industry and business but may not be experts in identifying the quantity and value of certain inventory items For example, consider observing a physical inventory and testing inventory valuation for a client who mines rare gems. In such cases, auditors may use a specialist to assist in testing the existence and valuation of inventory. Auditing standards provide guidance on whether and how an auditor can rely on a specialist. Search the PCAOB Web site (pcaobus.org) for PCAOB AU Section 336 guidance on "Using the work of a Specialist" to answer the following questions. a. List three examples of inventory items for which an auditor may need to use a specialist for testing existence or valuation, or both. How would the auditor use the specialist in each example

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