Surgent's Performing Inventory Observations

Overview

Generally Accepted Auditing Standards (GAAS) states that if inventory is material to the financial statements, the auditor should generally obtain evidence regarding the existence and condition of inventory by attending the entity’s physical inventory count. The types of inventory an entity might have varies from industry to industry as does the risk of fraud or error related to inventory counts. This module will discuss the procedures and risks involved in observing an entity’s physical inventory. (Please Note: This module is part of Surgent’s Audit Skills Training: Level 1.)

Highlights

• Inventory observation procedures
• When attendance at the inventory observation is impractical
• Inventory under the control of a third party
• Consideration of the risk of fraud in inventory counts
• Sampling related to inventory observations
• Considerations related to retail inventories, multiple locations
• Considerations for inventory observations

Prerequisites

None

Designed For

Accountants responsible for performing inventory observations

Objectives

• Identify audit risks related to physical inventory observations
• Understand the key controls related to inventory observations
• Perform common inventory observation audit procedures
• Know when to utilize sampling techniques related to inventory observations
• Perform remote inventory observations

Preparation

None

Notice

This on-demand webcast can be taken at any time of your choosing and is valid for one year from the date of purchase. No live instructor is present, and an exam is required to earn credit. You must score 70% or higher to earn the certificate.

How do I access my Self-Study Package?

Visit https://www.surgentcpe.com/login and enter your username (your LCPA email address) and password. If you do not remember your password, press the "Forgot?" button to receive a password reset email. Once logged in, the page will refresh to display your account menu on the left side.