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: March 18, 2024
Included In Certifications
This course is included in the following Certification Programs:
13 CoursesAudit Training Certification - Level 1 - Beginning Staff
- Professional Skepticism - Creating a Mindset for Finding Fraud and Error
- Audit Documentation - Creating Workpapers That Pass Review
- Adapting to the Engagement - Differentiating the Requirements of Preparations, Compilations, Reviews, and Audits
- The Audit Risk Model - Understanding Foundational Principles
- Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
- Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
- Auditing PP&E, Including Leases under Topic 842 - Digesting the Risks of Improper Treatment of Tangible Long-Lived Assets
- Auditing Inventory - Performing Required Observations and Other Common Procedures
- Analytical Procedures - Comprehending Financial Statement Audit Fundamentals
- Audit Reporting Fundamentals - Introducing Core Concepts in the Audited Financial Statement Drafting and Issuance Process
- AICPAs Code of Professional Conduct - Exploring the Foundational Principles Underlying the CPA Profession as a Whole
- Accounting Update - Hot Topics for Preparing Current Period Financial Statements
- Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
7 Reviews (26 ratings)
Reviews
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 Questions and Answers1 Question
Jennifer LouisCPA, President of Emergent Solutions Group LLC
I wanted to double-check about the accuracy of Exam questions 2, 4, and 14. Question number 2's answer seems like it should be "existence", but the answer key said it was "valuation". Question number 4's answer seems like it should be "FOB Shipping Point", but the answer key says "FOB Destination". And number 14's question says "What is the ceiling to compare to carrying value in valuation testing for FIFO inventory" and the answer key says "Net Realizable Value", but that appears to be the answer for LIFO inventory (not FIFO).
Please let me know if the answer key is incorrect or not for these questions (and any others that you review).