Write article on the topic of "COVID-19: Inventory Audit Testing Considerations." As needed to publish in the bulletin so do on the necessity

1. Talk about how should management handle inventory management?

2. Is it necessary to impair or write them off? explain

3. How do Does the inventory auditor perform?

4. Mention using any accounting standards, based Malaysia standards

kindly explore this topic further and study it. Please don't copy and paste from the

website.

This article requires more than one page

The following sections make up the article

The article must consist of:

Introduction

Issue

Discussion

Recommendation

Conclusion

HERE IS ATTACHED IS THE LINK FOR REFERENCE.

Sources:

https://www.icaew.com/technical/audit-and-assurance/audit/quality-control/coronavirus-considerations-for-inventory-audit-testing

Introduction

May describe more on how COVID impacts accounting on inventory and auditing on inventory from a management perspective and auditor's perspective, respectively.

Issues and discussion (should put together for better presentation) :

describe on what is the difficulties faced by the management.

a. Hard to trace inventory that is stored in multilocation and how to trace

b. Hard to project the expected inventory needed for future sales due to uncertainties

c. The possible implication of COVID on estimating the net realizable value ( should briefing state about the MFRS 102)

d. Impairment should be recognized if the written down is due to the temporary condition of covid?

e. Should management keep the inventory record on separate category names that are affected and not affected by the COVID?

f. It is impractical to change year-end due to sole reason of inventory regardless of the jurisdiction.

2 . describe the difficulties faced by the auditors.

a . How to obtain the evidence of net realizable value

b. Should auditors reduce the performance materiality for those highly impacted industries on their inventory value?

c. The consideration of storage cost on the inventory as the longer time the inventory to be kept in the warehouse ( for the applicable industry)

d. The accuracy of output that resulted from conducting the inventory testing using technology

Recommendation

For management:

Segregation of duties to each outlet to cope with the difficulty of tracking the inventory in multilocation

Make use of technology that is within the affordability of the company (i.e., RFID)

Produce regular reports on the obsolete inventory to keep trace and determine whether they want to write down the value

For auditors

Different audit procedures may be implemented for inventory that has different risk

Conclusion

May describe the collaboration of management and auditors on inventory topic