A very important aspect of the audit of the financial statements by an external auditor is the observation of the physical stocktaking

Required:

a) Why does the auditor need to attend a stock-take of the company that he audits?(6 marks)

b) List four procedures that an auditor would need to undertake prior to attending a

company's stock-take.(4 marks)

c) Explain the audit tests that the auditor would apply to establish the physical qualities of stock and their ownership.(4 marks)

d) How does the auditor satisfy himself that the procedure adopted by the management

with regard to stocks have been applied throughout the financial period? (6 marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a The auditor needs to attend a stocktake of the company that he audits in order to gain ... View the full answer