As a member of the audit team of Bemba Ltd, a manufacturing company, you have been assigned
Question:
As a member of the audit team of Bemba Ltd, a manufacturing company, you have been assigned to attend the annual physical stock count on 31/12/2017. The company's financial end falls on the same date. Although you have never been involved in the annual audit assignments for this particular client, your audit firm has been their auditor for a number of years.
Required;
a) Discuss the main purpose of attending the annual physical stock count.
(5 marks)
b) Explain the steps you would take to prepare yourself for this assignment.
(5 marks)
c) Explain the procedures that you would follow during the stock take attendance to satisfy yourself that cut off procedures are observed by the client.
(7.5 marks)
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley