The auditor is responsible for communicating significant deficiencies to: CEO Federal or state law enforcement Management The audit committee When using audit software related to verify inventory, these procedures could include: Looking for sales and purchases with the exact same invoice number Joining the inventory master file and inventory on hand file to ensure all items in inventory are included on the master file Joining the sales, inventory and purchases files to check for duplicates Looking at the inventory and purchases file to check for gaps in customer numbers