Your audit team is preparing for your largest manufacturing client’s annual inventory observation. You have all first-year staff auditors on your team. Prepare a training presentation to discuss specific analytical procedures and substantive procedures that are required to ensure the results of the inventory observation will properly support your firm’s opinion that the inventory account meets all the client’s assertions. Be sure to include common errors that can be noted during the inventory observation and how these can be eliminated.
Your presentation should meet the following criteria: