Observation of a clients inventory is a mandatory audit procedure. Address the following in your discussion post:

1. What part should the auditors play in planning the physical inventory?

2. Describe the procedures performed by the auditors during their observation of a clients physical inventory.

3. Why do the auditors document their inventory test counts in their working papers?

4. Why are the auditors concerned with detecting damaged and obsolete goods?

5. How do the auditors test for damaged goods in the clients inventory?

6. How do the auditors test for obsolete goods in the clients inventory?