Attendance at Physical Inventory Counting (Ref: Para. 4(a) ) …

Management ordinarily establishes procedures under which inventory is physically counted at least once a year to serve as a basis for the preparation of the financial report and, if applicable, to ascertain the reliability of the entity’s perpetual …

Attendance at physical inventory counting involves: Inspecting the inventory to ascertain its existence and evaluate its condition, and performing test counts; Observing compliance with management’s instructions and the performance of procedures for …

Matters relevant in planning attendance at physical inventory counting (or in designing and performing audit procedures pursuant to paragraphs 4-8 of this Auditing Standard) include, for example: The risks of material misstatement related to inventory. …

Evaluate Management’s Instructions and Procedures (Ref: Para. 4(a)(i) ) …

Matters relevant in evaluating management’s instructions and procedures for recording and controlling the physical inventory counting include whether they address, for example: The application of appropriate controls, for example, collection of used …

Observe the Performance of Management’s Count Procedures (Ref: Para. 4(a)(ii) ) …

Observing the performance of management’s count procedures, for example those relating to control over the movement of inventory before, during and after the count, assists the auditor in obtaining audit evidence that management’s instructions and count …

Inspect the Inventory (Ref: Para. 4(a)(iii) ) …

The objectives of the external auditor, where the entity has an internal audit function and the external auditor expects to use the work of the function to modify the nature or timing, or reduce the extent, of audit procedures to be performed directly by …