Suppose you are asked to do the audit of Glow Corporation's financial statements, famous company for selling quality diamonds. Inventory is one of the most crucial items in its balance sheet. Identifying and counting such inventory is not difficult but validating its worth is indeed a planning challenge. 

How would you plan to validate the worth of inventory for Glow Corporation? Justify your approach. 

Q:- Auditors use samples in their audit testing. In which of the situations is the use of sampling not appropriate. Justify your choice with reasoning. i.When the population is homogenous ii. When all items in the population have an equal chance of being selected iii. When the population is very small and all the items are material iv.When the population consists of a large number of transactions?

Answer rating: 100% (QA)

To validate the worth of inventory for Glow Corporation I would plan the following approach Understand the Inventory Management System I would start by gaining a comprehensive understanding of Glow Co... View the full answer