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Assets classified as inventory vary widely with the nature of the entity and industry. Depending on the complexity of the inventory and the related pricing model, the risk of material misstatement will vary widely as well. This module primarily focuses on performing the inventory observation while introducing other risk concepts related to inventory.

Major Topics:

  • Typical inventory observation procedures and special considerations
  • Handling various inventory observation real-life scenarios
  • High level overview of valuation and pricing methods
  • Key controls related to inventory

Learning Objectives

  • Identify and discuss typical audit risks and special audit considerations related to inventory.
  • Discover and describe common inventory observation audit procedures.
  • Explore and explain key controls related to inventory.
  • Recognize and compare inventory pricing options at a high level.
Last updated/reviewed: May 07, 2021

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Level 1 - Beginning Staff

  1. Professional Skepticism - Creating a Mindset for Finding Fraud and Error
  2. Audit Documentation - Creating Workpapers That Pass Review
  3. Adapting to the Engagement - Differentiating the Requirements of Preparations, Compilations, Reviews, and Audits
  4. The Audit Risk Model - Understanding Foundational Principles
  5. Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
  6. Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
  7. Auditing PP&E, Including Leases under Topic 842 - Digesting the Risks of Improper Treatment of Tangible Long-Lived Assets
  8. Auditing Inventory - Performing Required Observations and Other Common Procedures
  9. Analytical Procedures - Comprehending Financial Statement Audit Fundamentals
  10. Audit Reporting Fundamentals - Introducing Core Concepts in the Audited Financial Statement Drafting and Issuance Process
  11. AICPAs Code of Professional Conduct - Exploring the Foundational Principles Underlying the CPA Profession as a Whole
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services

Prerequisites

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course.
Designed For: Accountants responsible for auditing inventory and performing inventory observations.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  7:40Learning Objectives and Introduction to Auditing Inventory
  12:44Inventory Observation Procedures
  10:44Inventory Observation Procedures Cont'd
  3:50Remote Auditing
  13:10Case Study-Results of Inventory Observations
  16:50Year End Audit Procedures
  10:44Existence and Completeness of Inventory
  12:50Pricing and Valuation
  8:35Pricing and Valuation Cont'd
  3:53Key Controls Over Inventory
Continuous Play
  1:41:00Auditing Inventory - Performing Required Observations and Other Common Procedures
Supporting Materials
  PDFSlides: Auditing Inventory - Performing Required Observations and Other Common Procedures
  PDFAuditing Inventory - Performing Required Observations and Other Common Procedures Glossary/Index
Review And Test
  quizREVIEW QUESTIONS
 examFINAL EXAM