LMN Ltd. supplies navy uniforms across the country. The company has 4 warehouses at different locations throughout the India and 5 warehouses at the borders. The major stocks are generally supplied from the borders. LMN Ltd. appointed M/s OPQ & Co. to conduct its audit for the financial year 2017-18. Mr. O, partner of M/s OPQ & Co., attended all the physical inventory counting conducted throughout the India but could not attend the same at borders due to some unavoidable reason. In this situation, the auditor shall-
May 27, 2020
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If inventory is material to the financial statements, the auditor shall obtain sufficient appropriate audit evidence regarding the exitence of inventory by attending the physical inventory counting unless impractible. Purpose of attending inventory count is to: 1. Evaluate management's instructions and procedures for recording and controlling the results of the entity's physical inventory counting 2. Observe the performance of management's count procedures; 3. Inspect the counts 4. Perform test counts 5. Valuation of the inventory. 6. Identify the weaknesses to be informed to those charged with governance as per requirement of SA 260. 7Determine the key audit matters so as to be incorporated in the audit report as per requirement of SA 260. Select the main purpose:
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