The auditor's responsibility is to observe the stock taking process. However, observing the stock taking process implies a much more active role for the auditor, than that of a mere spectator.

Required:

i. Explain TWO  issues that auditor may face in the verification of inventory.

ii. Discuss the importance of auditor's attendance during the stock process.

iii. Explain TWO responsibilities expected of the auditor during the observation of the stock taking process.