You are the auditor of Wholesalers Ltd., a shoe wholesaling company, whose next year end will be 30^th September 1981. The company intends to determine the quantity and value of each line of stock at a physical stock check to be held on Saturday and SUNDAY, 26^TH AND 27^TH September 1981, and then adjust for movements between 27^th and 30^th September. The purchases and sales ledgers will be closed on 30^th September. The company has a fast-moving stock but operates a satisfactory recording system which incorporates goods inwards and dispatch records. You are required to describe the audit procedures that you would adopt to satisfy yourself that the company’s cut-off disciplines are adequate.

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In the given question auditor will go for inspection and observation as Audit Procedures Performing ... View the full answer