Auditing
Your auditing team have been assigned to perform a review of client’s inventory containing electric machine, parts, and raw materials used in making the machine.
a. What inquiries and analytical procedures should the auditor perform?
b. What will the auditor do if these procedures do not support the client’s inventory values or disclosures?
c. How would your level of professional skepticism differ depending on whether you are performing a review versus an audit engagement?
d. What are the differences between a review versus an audit engagement?
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