Assume you are an audit team member of KPG & Co, a public accounting firm in New Zealand. Your team has been appointed to conduct the audit of inventory for a New Zealand listed company; Kathmandu Holdings Limited. The engagement partner requires you to provide the following information relating to the inventory of Kathmandu Holdings Limited. 

1. Review the annual report of Kathmandu Holdings Limited and identify key information about its inventory that is relevant to the audit

 
2. With reference to ISA (NZ) 315, describe the risks associated with inventory of Kathmandu Holdings Limited

 
3. Analytical procedures: With reference to ISA (NZ) 520, perform possible analytical procedures of inventory using three years (2017-2019) of annual reports of Kathmandu Holdings Limited. (6 mar ks) 1. Based on each of the above analytical procedures, identify possible misstatements that may be indicated. 

4. With reference to ISA (NZ) 315, identify three internal controls and tests of controls of inventory of Kathmandu Holdings Limited.

5. With reference to ISA (NZ) 315, identify three substantive audit procedures that should be performed to ensure that the inventory of Kathmandu Holdings Limited is measured correctly.

Answer rating: 100% (QA)

1 Information obtained from the sources for inventory may be relevant identification and assessment of material misstatement by providing information ... View the full answer