Stock is often a material figure in both the profit and loss and the balance sheet and requires careful audit consideration. Auditors are required to verify the amount of stock held and consider its quality and condition in its valuation. This seminar will provide participants with an awareness of the audit risks associated with stock and responding to those risks with relevant audit procedures. Topics covered include: 

• Key planning considerations - nature of stocks, audit risks at assertion level, methods of valuation, physical stock count
• Performing a risk assessment on the stock provisions and responding to those risk factors with relevant audit procedures
• Attendance at the stocktake and the required audit procedures
• Obtaining third party confirmations and testing the reliability of evidence
• Analytical review procedures and relationships with margins
• Common issues on audit cold file reviews and how to prevent them happening