The observation of a client physical inventory is a mandatory auditing procedure

Question

The observation of a client physical inventory is a mandatory auditing procedure when is it possible for the auditor to carry out when inventories are materials? Why is the observation of physical inventory mandatory ?explain. Under what circumstances is observe of physical inventory impossible? Why is the auditors review of the client control of inventory tags important during the observation of physical inventory?explain The observation of a client physical inventory is a mandatory auditing procedure when is it possible for the auditor to carry out when inventories are materials? Why is the observation of physical inventory mandatory ?explain. Under what circumstances is observe of physical inventory impossible? Why is the auditors review of the client control of inventory tags important during the observation of physical inventory?explain Why is the observation of physical inventory mandatory ?explain. Under what circumstances is observe of physical inventory impossible? Why is the auditors review of the client control of inventory tags important during the observation of physical inventory?explain

Explanation / Answer

1.Yes. The observation of a client physical inventory is a mandatory .Why because it deliverd strong evidance that relates to existance and quality of the clints physical inventories.

Observing physical inventory is impossible if the independent auditors were not employed by the clint till after the inventory had been produced.there are some other circumstances like weather conditions, make it difficult for the auditors to be presented at the site of the clints inventory taking, but such situvation shoulbe sporadic.

3.the auditors review of the client control of inventory tags is important because of the vulnerability that fictitious physical inventory tags could be created by froudulent client personnel after the auditors have finished their remark of the physical inventory.

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