DESCRIPTION

This module focuses on procedures used to audit inventory valuation and cutoff. The session begins with a discussion of acceptable methods of accounting for inventory under GAAP, including a discussion on standard costing. The focus then shifts from accounting for inventory to the Audit procedures commonly applied to test the various components of inventory, including raw materials and overhead.

LEARNING OBJECTIVES

  • List costs typically capitalized as part of inventory
  • Explain basic concepts related to accounting for inventory
  • Describe potential audit procedures and approaches used to test the recorded cost of inventory

Prerequisites

  • 1+ Year Professional Experience

Advanced Preparation

None

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