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What must auditor do to meet their obligations under professional auditing standards related to the observation...

What must auditor do to meet their obligations under professional auditing standards related to the observation of inventory?

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Answer #1

The respective obligations of the auditor are ,

the auditor should understand the counting procedures of inventory followed by the client, auditor should make required inquiries.

The auditor should also conduct its own independent check on inventory counting in a physical way.

The auditor presence is very much important during the physical count of inventory.

The auditor should do the comparisons with the year end balances with the physical count on inventory.

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