Auditing Inventory Procedures

This assignment focuses on the essential procedures involved in auditing inventory. It emphasizes understanding relevant audit assertions related to inventory and explores various methods used by auditors to gather evidence and evaluate internal controls. The document delves into specific procedures like physical counts, observation, confirmation, and analytical review, providing guidance on how to effectively assess inventory accuracy and completeness.

Running Head: Professional Ethics in Auditing
Auditing Practices

Professional Ethics in Auditing 1
Table of Contents
Abstract:................................................................................................................................................2
Part A....................................................................................................................................................2
Introduction:......................................................................................................................................2
Ethical issues:....................................................................................................................................3
Courses of actions..............................................................................................................................4
Part B.....................................................................................................................................................5
Introduction.......................................................................................................................................5
Key Audit Assertions..........................................................................................................................6
Audit procedures for Inventory Audit................................................................................................7
Outcomes of the above audit procedure...........................................................................................9
Further Audit implications...............................................................................................................10
Conclusion:......................................................................................................................................11
Appendix.............................................................................................................................................12
References...........................................................................................................................................27

Professional Ethics in Auditing 2
Abstract:
In this report, the professional ethics that are applicable on the member in practice of auditing
services are discussed. In part A of the report the ethical issues involved in soliciting the
client case by the firm of auditors have been observed and the possible courses of actions to
deal with those ethical issues are identified. In part B, the procedure of inventory audit which
is the significant part of overall audit of the company are set out. As in the given case it is not
possible for the auditor of GHT Ltd. to attend the physical count of the inventory as a part of
audit procedure, the various other alternative audit procedures that could be taken by the
auditor have been recognised. The stock sheet provided by the management of the company
is being critically analysed to form an audit opinion on the true and fair view of financial
statements of the company as at 31st March, 2018.
Part A
Introduction:
Andy, a well known auditor in the present case due to the personal and professional
competencies has failed to bring a considerable customer base for its firm which has two
other auditors. In order to secure his position in the firm of auditors, Andy is in search of
potential clients to provide auditing and assurance services. For the same purpose, the auditor
has responded to the tender of a large company named as Office Supplies Ltd. The company
was a supplier of products such as office furniture and technologies and has already
appointed an auditor to carry the overall audit of the company.

Professional Ethics in Auditing 3
While undertaking any auditing engagement, the engagement member must comply with the
fundamental principles of auditor such objectivity, independence, professional competency,
professional behaviour and integrity (Whittington & Pany, 2010). There principles are
necessary to be maintained by the auditor to respect the profession of auditing and to gain the
trust of general public in auditing profession. In complying with these basic principles the
auditor may have to face various threats such as threat of self-interest (APESB, 2010).
Ethical issues:
The ethical issues that are involved in the present case are as follows:
First of all, while responding to the tenders the auditor must make efforts to communicate
with the existing auditor of the proposed company to identify the reasons for which the
existing auditor is withdrawing from the audit engagement of the company. Without
communicating with the current auditor, the auditor would be held guilty of professional
misconduct if he accepts the audit in such case (Rossouw, Prozesky, du Plessis, Prinsloo,
2010). Moreover, charging an unreasonable fees excessively higher than that of the
competing auditing firms is also not an ethical practice on part of auditor. The auditor must
also not solicit the clients using the modes that are not generally open to the professional
auditors. In the current case, the relatives of the auditors i.e. his wife and the sister of his wife
are manipulating the employee (Silvya) in the organisation of proposed company to make
arrangements for the auditor’s appointment, which is not as per the ethical standards of the
professional auditors. Further, the auditor might take the help of Silvya to obtain the
appointment as the auditor in OS Ltd. by using unethical ways such as manipulation, bribing,
undue influence etc. whereas adoption of such ways is not ethical in any sense. In order to
secure the safe partnership in the firm of auditor, Andy might accept certain conditions of the
management of the company which are not ethically or professionally acceptable under the

Professional Ethics in Auditing 4
professional and ethical standards of auditing profession (Jackling, Cooper, Leung &
Dellaportas, 2007).
The wife of the auditor and her sister are under no obligation to comply with the ethical and
professional ethical standards of the auditing profession that are applied to Andy, being the
member in practice of institute. Therefore, their acts of interacting with Silvya and
demanding the memo of evaluation of managing director of the company are not
professionally unethical. However, Silvya’s act of communicating the important and sensitive
information regarding her managing director’s decision is not morally and professionally
correct due to the fact that the confidentiality of the company is getting affected through
Silvya’s actions.
It might also be possible that the independence of the firm of auditor’s will also be affected if
the appointment as the auditors of OS Ltd is accepted because the management of the
company may offer such appointment on certain conditions (Jackling, Cooper, Leung &
Dellaportas, 2007). The managing director may instruct the firm not to provide adverse or
qualified opinion on the true and fair view of financial statements of the company.
Courses of actions:
In the present case, the auditor must first of all communicate with the existing auditor with
the permission of the proposed company. The auditor must ask the existing auditor to provide
all the necessary information and facts which have become the grounds for his resignation
from the place of auditor. Further, the auditor must also disclose his relationship with the
employees of the company before being appointed as the auditor. The auditor must also
ensure that there is no ambiguity or confusion of work responsibilities between the auditor
and management of the company. For this purpose, the auditor make proper documentation
of everything that is being discussed between the company and auditor. Moreover, the auditor

Professional Ethics in Auditing 5
must not charge any unreasonable fees for the provision of auditing services. Also, the
auditor must ensure that the only such service that the auditors are competent and eligible to
provide, are provided by them to the new client. Furthermore, the auditor must ensure that the
principle of independence is not adversely affected by such appointment (Hoffman &
Zimbelman, 2009). The auditor must also not take his family relationships in between his
professional engagements. The company can sue the auditor and the assistant of the
managing director for indulging in the practices that are not in the interest of the company.
Moreover, if the auditor gains the appointment through the inappropriate modes or ways, the
company and other person who is affected by his behaviour can sue the auditor for which the
regulatory bodies can impose heavy penalties and fines (Brown, Stocks & Wilder, 2007).
Part B
Introduction
Inventories are the integral part of any business and hence they requires to be properly valued
in the financial statements of the company. The undervaluation and overvaluation of
inventory can adversely affect the true picture of company’s profitability and hence it can be
used as a tool to manipulate the profits of the company so as to mislead the users of financial
reports. Audit of the company is undertaken with the objective of providing the correct
opinion on the truthfulness and fairness of the financial statements. During the auditing
engagement, the auditor are required to obtain sufficient and appropriate audit evidences to
provide the reasonable level of assurance to the audit report users. Inventory audit is an
important element of overall audit process of the company which requires significant
attention of the auditor. Following are some of the key assertions of inventory audit:

Professional Ethics in Auditing 6
Key Audit Assertions:
Completeness of the inventory records:
Auditor of the company carries the audit of the inventory held by the company to ensure that
all the inventory units are recognised in its financial statements. Auditor must also check that
any portion of inventory if held by the third party, is actually recorded in the entity’s books of
accounts of the client entity (Quizlet, 2018).
Accuracy of inventory data maintained by the company:
The data maintained regarding inventory must be accurate enough to serve the auditor a base
to draw conclusions for the purpose of forming an audit opinion (DeHoratius & Raman,
2008). The auditor must ensure that inventory is correctly recorded in the financial statements
and there are no errors in its measurement and valuation (Accounting Simplified, 2013). This
is necessary to be ensured by the auditor so as to conclude that financial statements of the
company are free from any material misstatements (Karacaer, Gohar, Aygün & Sayin, 2009).
Valuation of inventory:
The inventories must be valued appropriately using the reasonable method of stock valuation
so that the financial statements of the company depicts the true state of company’s
profitability. The auditor must carefully identify the method that is employed by the entity’s
management and check its reasonability looking at the nature of inventories (Prasad, 2017).
Rights and obligations regarding the inventory: Only those inventories must be recorded
in entity’s stock registers that are owned by the entity. The auditor undertakes the audit
procedures to confirm that the financial statements of the company carries only such
inventory that is possessed by it. The recording of inventory that is in possession of third

Professional Ethics in Auditing 7
party in the company’s financial statement would affect the true state of entity’s profitability
and liquidity position (AS 2510).
Existence of inventory with the company: The inventory which is shown in the financial
statements of the company must be in actual existence. An auditor performs several audit
procedures to ensure that the inventory which is in true existence is only recorded by the
entity. They need to ensure that the company is not making false claims of holding any
inventory when in reality it does not hold any such inventory (Freedman, 2018).
Audit procedures for Inventory Audit
Audit procedures to be applied to achieve each of the objective that is above discussed:
There can be various audit procedures that can be employed by the auditor of the company to
check the appropriateness of the inventory records of the company. One of the most relevant
method of inventory audit is the attendance of physical count of the inventory by the auditor
himself. The personal observation of approaches used by the management of the company for
the inventory count helps the auditor to ensure that the management is using the correct
approach to measure and value the inventory and also the condition and quality of inventory.
When the inventories of the client company is held in the warehouses or the stores of the
company, the auditor must personally visit such places to ensure that the management of the
company is not involved in any ill-practices of manipulating its inventory records (Low and
Tan, 2011). However, they may be certain circumstances when it is not possible for the
auditor to physically attend the inventory counting process due to the location or time factors.
Then in such unavoidable situations the auditor must extend the audit procedures as far as
possible.
In the instant case of audit of GHT Ltd. it was impracticable for the auditor of the company to
visit the place of actual inventory taking for the purpose of inventory audit due to the fact that
there was limited time to conduct the entire audit engagement. In this situation, there could be

Professional Ethics in Auditing 8
various alternative audit procedures that might be performed by the auditor to confirm that
the financial statements are not materially misstated typically in the areas of inventory. To
form the opinion on the genuineness of the overall financial statements prepared and
presented by the management of the company, the auditor is required to critically assess the
each of the significant element of the financial statements. Therefore, the audit of inventory
must be undertaken by performing the alternative procedures in the cases where it is not
possible for the auditor to perform some of the necessary audit procedures. The alternative
audit procedures are discussed below:
Invoice reconciliation: The auditor must check the corresponding invoices of the transactions
of purchase and sale of inventory so as to determine the actual inflow and outflow of
inventory from the business of the client’s organisation. The invoices helps the auditor to
cross verify the inventory records with the evidences of the actual transactions related to
inventory. The invoices also helps the auditor to determine the all the necessary elements of
cost of purchase and sale of inventory such as freight, taxes and other charges (Office of
auditor general of Canada, 2017).
Internal controls: The auditor must carefully study the report of internal auditor in regards to
the inventory held by the company. Auditor must ensure the continuous functioning of
controls and their adequate monitoring by the internal auditor. The management of the
company must be regular and competent enough to record and measure the inventory that is
held by the company (Corporate Finance Institute, 2018). It is the professional duty of the
auditor to ensure that strong internal controls are implemented by the entity’s management
for the inventory valuation. If during any stage of the audit engagement the auditor realises
that the financial statements of the company are materially misstated due to the incorrect
inventory records, he must communicate the matter with the company and request them make
the required adjustments in the records (Accounting Tools, 2017).

Professional Ethics in Auditing 9
Analytical procedures: These are the key substantive audit procedures that improves the
overall audit quality. Under these procedures the comparative study of company’s current
gross margin or the unit cost is compared with that of previous years so as to understand the
significant changes also the inventory turnover ratio of the company can also be analysed to
identify any irregularities in the inventory areas (Loughran, M., n.d.).
Audit sampling: This is also one of the most popular audit procedure under which the auditor
carries checking on the selected areas instead of carrying lengthy and comprehensive
checking (Lumen, n.d.). The materiality level of the transactions is determined by the auditor
and then the transactions that meets the materiality criteria are checked in detail using the
above discussed audit procedures (Gay & Simnett, 2005).
Outcomes of the above audit procedure
In the stock sheet provided by the management of GHT Ltd of 15th May, 2018 is examined by
the auditors of the company and it is found that there is a vast difference between the value
reflected in the financial reports of the company as on 31st March, 2018 and the value
determined as per the relevant accounting standards i.e. lower of cost and net realisable value.
The significant difference in the closing inventory valuation are identified to be unreasonable
is casting the doubt on the authenticity of the financial reports of the company. The
company’s method of stock valuation is thus found to be inappropriate. Moreover, it is also
observed that the data maintained in respect of inventory is not accurate as the sales quantity
for certain orders is shown as negative which is not practically possible. This indicates that
the internal control procedures in the areas of inventories is quite weak and hence they need
to be improved. The undervalued closing inventory of the company may adversely affect the
profitability of the position of the company. Further it is also observed that the company is
dealing in a wide range of items and hence maintaining a mix of various inventory items.
However, the company has not maintained the inventory record in the systematic order by

Professional Ethics in Auditing 10
categorising the inventories according to their nature and purpose. It has been identified there
are certain inventory items that have reported gross loss and therefore they required
significant attention of the auditor of the company. The following items have reported loss
and hence they are checked with due attention and by performing extensive audit procedure
such as analytical audit procedures. Also it is found that there are certain inventory items for
which the first in first out method of stock valuation is not correct.
There are certain inventory items for which company has executed a sales of more than
$25000 which has been set out as the materiality level and hence these sales are critically
cross verified with the invoices of the sales to check the genuineness of the sales figure as
shown in the financial statements of the company.
Further Audit implications:
Once all the audit procedures that were practicable to be applied for the inventory are applied,
the auditor is in the position to form an audit opinion on the true and fair view of entity’s
financial statements. The audit procedures enables the auditor to conclude as to whether the
financial statements are free from any material misstatements or not, due to any fraud or
errors on part of management or any third party. In this case, the auditor has observed that the
value of closing stock as reflected in the financial statements is not in line with the value
determined as per the generally accepted accounting principles. Therefore, the auditor is
obliged to identify the reasons of such differences in the valuation of inventory. The auditor
shall assess the reasonability of the method approach used by the management of the entity in
valuing its inventory as the year end. The auditor shall communicate the differences in the
opinion in valuing the closing stock of the inventory between him and his client. It is the
responsibility of the auditor to make sure that the management agrees to the auditor’s

Professional Ethics in Auditing 11
suggestion and incorporates the same in the financial statements. However, if the client
company does not agree with the auditor’s recommendations, the auditor must make
necessary efforts that are required in such situations (Chung & Monroe, 2001). They must
examine the appropriateness of withdrawing their firm’s name with their client organisation.
However, if is not reasonable to disassociate the name of auditor’s firm with the name of the
company, then auditor must express the audit opinion through the audit report to the readers
of report. In this case, since the inventory value is significantly varying from the value as per
the GAAP and relevant accounting standards, the auditor shall issue adverse audit opinion. If
the difference in the inventory values as per company’s method and relevant accounting
standards was negligible or acceptable, the auditor could have issued qualified report (Arens,
et al., 2007).
Conclusion:
Even if the management of GHT Ltd is contending that the inventory records of the company
contains no material discrepancies, the auditor shall not conclude his audit engagement on the
basis of the said contention. Rather the auditor must make necessary and appropriate efforts
to identify the reasons of heavy variations between the stock record of 15th May, 2018 and the
financial report of the company as on 31s March, 2018. The auditor must apply possible
substantive and compliance procedures to check the authenticity of inventory records of the
company. If after performing these audit procedures, the auditors does not find any
satisfactory reason of such differences, he must qualify the report.

Professional Ethics in Auditing 12
Appendix
Assertion- Correctness
Audit query-1
Is the value of inventory reported in
the financial statements correct?
Audit Object Verifying valuation of inventory
Audit Assertion Valuation
Audit Test (1)
Computing value of inventory based
on lower of cost or NRV
Audit Finding
Total value of inventory is 1126649
while the value reported in the
financial statements is *******
Pro
d_
No Prod_Name
Unit
_Co
st
Sale
s_Pr
ice
P
Q
T
Y
St
o
ck
S
Q
T
Y
LPD
ATE
LSD
ATE
CO
S
Sal
es GP
Value
(Lower of
Cost or
NRV)
100
11
HOSE
HANGER 6.87 9.99
43
0
24
30
24
20
10-
10-
201
7
18-
10-
201
7
166
25.
4
241
75.
8
755
0.4 1348.95
303
23
LONG NOSE
PLIERS 7"
15.8
7
17.9
5 25 85 45
01-
11-
201
7
10-
11-
201
7
714
.15
807
.75
93.
6 1500.6
695
91
4 CU FT
WHEELBARR
OW 1.83 2.99
72
0
82
0
80
0
10-
08-
201
7
30-
09-
201
7
146
4
239
2 928 2196
810
01
SUPER
CALLUM
LEAF MULCH 1.22 2.29
60
0
18
00
58
7
30-
03-
201
8
01-
05-
201
8
716
.14
134
4.2
3
628
.09 8241.6
100
306
CYLINDRICA
L LOCK SET
BLK 8.08
16.9
8
42
0
10
20
20
0
03-
10-
201
7
10-
08-
201
7
161
6
339
6
178
0 546
100
316
BATH LOCK
SET BRASS 1.4 3.98
19
0
39
0
18
6
30-
09-
201
7
30-
09-
201
7
260
.4
740
.28
479
.88 8125
100
336
BATH LOCK
SET
COPPER 12.5
18.4
9
25
0
65
0
24
8
30-
09-
201
7
31-
12-
201
7
310
0
458
5.5
2
148
5.5
2 4144
100
356
BATH LOCK
SET
ALUMINUM 29.6
39.9
8 90
14
0
13
5
20-
09-
201
7
23-
09-
201
7
399
6
539
7.3
140
1.3 1339.2
100
818
1/2" 90
DEGREE
ELBOW COP 10.8
15.9
9 0
12
4 48
10-
02-
201
7
31-
08-
201
7
518
.4
767
.52
249
.12 970.38

Professional Ethics in Auditing 13
101
018
1/2" 45
DEGREE
ELBOW COP 5.99 7.99 0
16
2
14
4
10-
02-
201
7
31-
08-
201
7
862
.56
115
0.5
6 288 1206
102
066
CLASSIC
ENTRANCE
SET BLK 2.68 3.02
30
0
45
0
42
0
01-
10-
201
7
01-
01-
201
8
112
5.6
126
8.4
142
.8 2062.9
102
086
COLONIAL
ENTRANCE
SET BR 8.42
10.9
5
12
0
24
5 95
02-
10-
201
7
08-
10-
201
7
799
.9
104
0.2
5
240
.35 6615.25
102
096
SEVILLE
ENTRANCE
SET BR
28.1
5
32.9
5
11
0
23
5 80
05-
02-
201
8
08-
02-
201
8
225
2
263
6 384 11700
102
106
CAPE COD
ENTR SET
BLK 18
25.9
8
45
0
65
0
61
2
30-
09-
201
7
31-
12-
201
7
110
16
158
99.
76
488
3.7
6 25380
102
116
CAPE COD
ENTR SET
BR 47
59.9
8
14
0
54
0
13
0
30-
09-
201
7
31-
12-
201
7
611
0
779
7.4
168
7.4 915
102
618
1/2" SOFT
TUBING
30'COIL 6.1 8.98 50
15
0 40
06-
06-
201
7
10-
06-
201
7 244
359
.2
115
.2 2624
102
628
R161D
TUBING 1/2" -
12' 41 50 24 64 18
11-
01-
201
8
14-
01-
201
8 738 900 162 13158
102
710
ALUMINUM
TEAPOT 8
CUP 38.7
54.9
8
14
0
34
0
30
0
11-
09-
201
7
15-
09-
201
7
116
10
164
94
488
4 2296
102
840
PRESSURE
COOKER
8QT 41 50 16 56 32
11-
01-
201
8
14-
01-
201
8
131
2
160
0 288 2653.5
102
918
1/2" TEE
COPPER TO
COP 8.7 9.99
10
5
30
5
21
0
06-
06-
201
7
10-
06-
201
7
182
7
209
7.9
270
.9 3248
104
177
LATEX SEMI-
GLOSS
LILAC 11.2
14.9
8 90
29
0
17
0
20-
10-
201
7
01-
11-
201
7
190
4
254
6.6
642
.6 40600
104
327
LATEX SEMI-
GLOSS
YELLOW 7 8.99
33
00
58
00
53
00
20-
10-
201
7
01-
01-
201
8
371
00
476
47
105
47 2232
104
347
LATEX SEMI-
GLOSS
ORANGE 12.4
16.9
8 90
18
0
16
3
20-
10-
201
7
01-
11-
201
7
202
1.2
276
7.7
4
746
.54 5614
104
377
LATEX SEMI-
GLOSS
GREEN
32.0
8
44.8
9
75 17
5
15
5
20-
10-
201
01-
11-
201
497
2.4
695
7.9
5
198
5.5
5
501.7

Professional Ethics in Auditing 14
7 7
104
397
LATEX SEMI-
GLOSS
CARAMEL 0.29 0.44
94
0
17
30
15
00
20-
10-
201
7
01-
01-
201
8 435 660 225 2184
104
657
LATEX SEMI-
GLOSS PINK 11.2
14.9
8 95
19
5
18
4
20-
10-
201
7
01-
11-
201
7
206
0.8
275
6.3
2
695
.52 107520
104
677
LATEX SEMI-
GLOSS
APRICOT 16.8
23.9
8
34
00
64
00
60
00
20-
10-
201
7
01-
01-
201
8
100
800
143
880
430
80 3888.5
106
218
1/2" GATE
VALVE
COPPER
14.1
4
19.9
9 75
27
5 86
18-
04-
201
7
31-
08-
201
7
121
6.0
4
171
9.1
4
503
.1 1864.7
112
276
MATCHING
DOOR
KNOCKERBL
K 6.43 7.95 90
29
0
11
0
01-
11-
201
7
10-
11-
201
7
707
.3
874
.5
167
.2 8395
112
296
LION DOOR
KNOCKER
BR 36.5
47.9
8
13
0
23
0
12
0
23-
10-
201
7
30-
10-
201
7
438
0
575
7.6
137
7.6 265.6
112
356
MATCHING
DOOR
KNOCKER
BR 3.32 4.8 40 80 75
01-
11-
201
7
10-
11-
201
7 249 360 111 1736
119
040 BLANCHER 2.48 3.49
30
0
70
0
24
8
30-
09-
201
7
31-
12-
201
7
615
.04
865
.52
250
.48 76275.5
122
158 Y FITTING 4"
41.2
3
54.9
5
65
0
18
50
60
0
12-
05-
201
8
13-
05-
201
8
247
38
329
70
823
2 349.44
123
438
ADAPTER
FIBERCAST
3"X4" 3.12 3.99 12
11
2 50
15-
08-
201
7
31-
08-
201
7 156
199
.5
43.
5 440
123
938
NEOPRENE
ROOF FLASH
3" 8.8
13.9
8 50 50 0
01-
12-
201
7
10-
12-
201
7 0 0 0 2585
123
968
REDVGING
TY 3"X3"X1" 9.4
12.9
8 75
27
5 90
15-
01-
201
8
21-
01-
201
8 846
116
8.2
322
.2 3334.8
124
518
DRAINAGE
TY 3" 7.94 10
15
0
42
0
41
2
09-
10-
201
7
01-
11-
201
7
327
1.2
8
412
0
848
.72 2845.25
126
008
1/2" CPVC
PLASTIC
PIPE 6.56 5.99 75
47
5
41
2
10-
04-
201
7
31-
08-
201
7
270
2.7
2
246
7.8
8
-
234
.84 129
126
1/2" CPVC
MALE
0.43 0.99 0 30
0
30
0
10-
03-
10-
03-
129 297 168 6360

Professional Ethics in Auditing 15
058 ADAPTER
201
7
201
7
126
308
1/2" CPVC
PIPE STRAP
155.
8 79.5 0 80 12
10-
03-
201
7
10-
03-
201
7
186
9.6 954
-
915
.6 12002
134
420
VEGETABLE
STEAMER
14.1
2
22.9
8
85
0
85
0
80
4
12-
05-
201
8
13-
05-
201
8
113
52.
48
184
75.
92
712
3.4
4 7846.8
135
060
192 OZ
DUTCH
OVEN
40.2
4
51.9
8 95
19
5 93
15-
06-
201
7
01-
07-
201
7
374
2.3
2
483
4.1
4
109
1.8
2 1911
155
150
STEP-ON
CAN 1.47 2.59
13
00
13
00
12
48
30-
03-
201
8
01-
05-
201
8
183
4.5
6
323
2.3
2
139
7.7
6 540
155
160
1 SHELF
BREADBOX 9
17.9
8 0 60 47
04-
02-
201
7
05-
02-
201
7 423
845
.06
422
.06 28677
155
170
4 PC
CANISTER
SET
173.
8
299.
99 90
16
5
14
7
10-
08-
201
7
21-
09-
201
7
255
48.
6
440
98.
53
185
49.
93 7219.2
200
306
CYLINDRICA
L LOCK SET
BR 5.12 9.99
51
0
14
10 30
03-
10-
201
7
10-
08-
201
7
153
.6
299
.7
146
.1 12516
207
220
NAPKIN &
RELISH
HOLDER 59.6
89.9
8 70
21
0
21
0
01-
12-
201
7
10-
12-
201
7
125
16
188
95.
8
637
9.8 3525
217
066
ALUMINUM
DOOR 14.1
19.9
8 50
25
0
14
0
11-
09-
201
7
15-
09-
201
7
197
4
279
7.2
823
.2 13091
220
074
3/8"
COMPACT
DRILL
PRESS
137.
8
259.
99 75 95 88
10-
08-
201
7
21-
09-
201
7
121
26.
4
228
79.
12
107
52.
72 21252
221
496
WHITE
ENAMEL
GRILL
10.1
2
16.9
8
90
0
21
00
84
2
12-
05-
201
8
13-
05-
201
8
852
1.0
4
142
97.
16
577
6.1
2 13259.5
221
506
BLACK
ENAMEL
GRILL
11.5
3
15.9
8
65
0
11
50
70
0
30-
09-
201
7
31-
12-
201
7
807
1
111
86
311
5 2492
221
676
PNEUMATIC
DOOR
CLOSER 7.12 8.6
35
0
35
0
31
4
10-
01-
201
8
15-
01-
201
8
223
5.6
8
270
0.4
464
.72 7656
224
984
ROUTER
BOX 8.7
10.9
8
18
0
88
0
74
0
02-
02-
201
8
05-
02-
201
8
643
8
812
5.2
168
7.2 283.5
6 PC 0.63 1.98 45 45 11 10- 21- 70. 221 151 1287.6

Professional Ethics in Auditing 16
225
014
WOODBORIN
SET 0 0 2
08-
201
7
09-
201
7 56 .76 .2
225
934
MASONRY
DRILL SET
10.7
3
14.9
5 60
12
0
12
0
01-
11-
201
7
10-
11-
201
7
128
7.6
179
4
506
.4 953.6
226
054
12 PC PILOT
BIT SET 2.98 3.99
22
0
32
0
29
0
12-
06-
201
7
31-
08-
201
7
864
.2
115
7.1
292
.9 7020.52
226
620
CAKE
DECORATIN
G SET 2.99 3.12
74
8
23
48
70
0
30-
09-
201
7
15-
10-
201
7
209
3
218
4 91 946.68
232
194
12 SP AUTO
SCROLLER
SAW 3.22 5.79
14
4
29
4
21
2
12-
06-
201
7
31-
08-
201
7
682
.64
122
7.4
8
544
.84 13877.4
240
284
FORMICA
CUTTING BIT 6.87 9.99
67
0
20
20
18
70
10-
10-
201
7
18-
10-
201
7
128
46.
9
186
81.
3
583
4.4 661.5
240
664
SHAPENER
FOR 1/4"
BITS 2.1 4.99 75
31
5
20
5
05-
02-
201
8
10-
02-
201
8
430
.5
102
2.9
5
592
.45 19665
240
884
ADJ EDGE
GUIDE 87.4
136.
99 25
22
5
18
8
09-
09-
201
7
14-
09-
201
7
164
31.
2
257
54.
12
932
2.9
2 1761.2
241
314
ROUT-A-
FORM
PANTOGRAP
H 5.18 6.49
13
0
34
0
31
0
01-
02-
201
8
06-
02-
201
8
160
5.8
201
1.9
406
.1 2310
241
754
STEEL
ROUTER
TABLE 8.4
14.9
8 75
27
5 0
30-
03-
201
8
01-
05-
201
8 0 0 0 297
243
224
2 SP
ROTARY
SANDER 0.33 0.49
55
0
90
0
86
0
30-
06-
201
7
15-
07-
201
7
283
.8
421
.4
137
.6 4070
247
034
SET OF 6
ROTARY
CUTTERS 14.8
18.9
5
12
5
27
5
12
5
05-
02-
201
8
08-
02-
201
8
185
0
236
8.7
5
518
.75 2430
270
324
RADIAL ARM
SAW 10" HD 0.03 0.04
10
00
81
00
0
71
00
0
11-
01-
201
8
14-
01-
201
8
213
0
284
0 710 5870.5
270
354
MOLDING
HEAD
GUARD 19.9
32.9
8 95
29
5 77
11-
11-
201
7
18-
11-
201
7
153
2.3
253
9.4
6
100
7.1
6 24341
276
054
21 PC
MONO-
CUTTER SET 2.41 2.79
46
00
10
10
0
96
00
30-
06-
201
7
15-
07-
201
7
231
36
267
84
364
8 21670

Professional Ethics in Auditing 17
277
154
ADJUSTABLE
DADO 3.94 4.8
10
00
55
00
50
00
10-
09-
201
7
12-
12-
201
7
197
00
240
00
430
0 3573.8
302
303
MITRE BOX
21" 21.4
34.8
8 90
16
7
15
4
11-
11-
201
7
18-
11-
201
7
329
5.6
537
1.5
2
207
5.9
2 1620
302
903
4 PC CHISEL
SET 3 5.99
24
0
54
0
21
2
10-
08-
201
7
30-
09-
201
7 636
126
9.8
8
633
.88 1095
303
343
STRAIGHT
CLAW
HAMMER 0.73 1.69
15
00
15
00
14
78
30-
03-
201
8
01-
05-
201
8
107
8.9
4
249
7.8
2
141
8.8
8 705
303
403
12 OZ BALL
PEIN
HAMMER 7.05
10.9
9 0
10
0 96
12-
06-
201
7
31-
08-
201
7
676
.8
105
5.0
4
378
.24 741.6
303
413
8 OZ BALL
PEIN
HAMMER 3.09 3.59 40
24
0
14
0
15-
08-
201
7
31-
08-
201
7
432
.6
502
.6 70 1284
305
603
#4 SMOOTH
PLANE 21.4
34.9
8 25 60 43
10-
01-
201
7
30-
04-
201
7
920
.2
150
4.1
4
583
.94 4477.5
310
890 MINCER 19.9
32.9
8 90
22
5
21
0
11-
11-
201
7
18-
11-
201
7
417
9
692
5.8
274
6.8 2146
311
800
PASTA
NOODLE
MAKER 7.4 9.69 90
29
0
14
0
01-
01-
201
8
06-
01-
201
8
103
6
135
6.6
320
.6 410
311
990 DIET SCALE 0.01 0.09
10
00
41
00
0
10
00
06-
10-
201
7
09-
10-
201
7 10 90 80 2044.5
321
663
SCREW
DRIVER 1/8 X
4 SL 8.7
10.9
8
23
5
23
5
87
0
02-
02-
201
8
05-
02-
201
8
756
9
955
2.6
198
3.6 10032
321
683
SCREW
DRIVER 1/4 X
6 SL 52.8
74.9
8 90
19
0 70
02-
02-
201
8
05-
02-
201
8
369
6
524
8.6
155
2.6 1017.75
322
303
SCREW
DRIVER NO.3
PHILL 3.1 2.95
14
5
34
5
17
0
05-
02-
201
8
08-
02-
201
8 527
501
.5
-
25.
5 2601
324
803
ARC JOINT
PLIERS 6" 5.1 6.99
11
0
51
0
45
0
14-
09-
201
7
20-
09-
201
7
229
5
314
5.5
850
.5 15190
324
883
ARC JOINT
PLIERS 16"
62 79.9
8
14
5
24
5
14
0
14-
09-
201
20-
09-
201
868
0
111
97.
2
251
7.2
91760

Professional Ethics in Auditing 18
7 7
364
163
TAP & DIE
SET 41
PIECES 49.6
69.9
8
65
0
18
50
-
12
30-
03-
201
8
01-
05-
201
8
-
595
.2
-
839
.76
-
244
.56 2811.75
412
553
6 PC OPEN
END
WRENCH
SET 1.63 4.99
82
5
17
25
81
5
10-
08-
201
7
21-
09-
201
7
132
8.4
5
406
6.8
5
273
8.4 24528
412
753
6 PC BOX
END
WRENCH
SET 5.84
10.9
8
22
00
42
00
38
40
10-
08-
201
7
21-
09-
201
7
224
25.
6
421
63.
2
197
37.
6 384.4
412
903
8 PC METRIC
HEX KEYS 3.1 3.79 24
12
4 36
15-
08-
201
7
31-
08-
201
7
111
.6
136
.44
24.
84 2268
414
283
METRIC
SOCKET SET
11 PC 8.4
12.9
9 95
27
0
26
2
03-
11-
201
7
08-
11-
201
7
220
0.8
340
3.3
8
120
2.5
8 2814
414
313
METRIC
TOOL SET
3/8" DR 8.4
12.9
9 95
33
5
31
2
03-
11-
201
7
08-
11-
201
7
262
0.8
405
2.8
8
143
2.0
8 3901
435
438
DUAL LEVER
FAUCET-NO-
SPR 9.4 12
15
0
41
5
36
4
09-
10-
201
7
01-
11-
201
7
342
1.6
436
8
946
.4 1469.64
501
051
11" SPADING
FORK 9.93
13.9
9 48
14
8 56
12-
06-
201
7
31-
08-
201
7
556
.08
783
.44
227
.36 1113
501
541
24" LEAF
RAKE 5.3 7.5
11
0
21
0 90
01-
08-
201
7
09-
08-
201
7 477 675 198 309.6
501
551
20" LEAF
RAKE 0.24 0.39
94
0
12
90
12
50
30-
06-
201
7
15-
07-
201
7 300
487
.5
187
.5 4736
504
061
54" EDGING
TURF 5.12 9.99
67
5
92
5
90
0
10-
08-
201
7
21-
09-
201
7
460
8
899
1
438
3 7947
504
761
6" EDGE
TRIMMER 8.83
12.9
8
55
0
90
0
73
5
10-
08-
201
7
30-
08-
201
7
649
0.0
5
954
0.3
305
0.2
5 4032
506
331
5 PIECE
GARDEN
TOOL SET 2.88 5.49
50
0
14
00 40
10-
08-
201
7
30-
09-
201
7
115
.2
219
.6
104
.4 993.25
507
811
50' RUBBER
HOSE 1.37 2.49
72
5
72
5
61
0
10-
08-
201
7
30-
09-
201
7
835
.7
151
8.9
683
.2 423.5
507
25' VINYL
HOSE
12.1 13.5 15 35 12 01-
08-
09-
08-
145
.2
162 16.
8
5889

Professional Ethics in Auditing 19
841
201
7
201
7
507
851
50' VINYL
HOSE 3.9 4.69
51
0
15
10
12
48
10-
08-
201
7
30-
08-
201
7
486
7.2
585
3.1
2
985
.92 9817.5
508
191
PISTOL GRIP
NOZZLE 18.7
25.9
8 75
52
5
37
5
01-
01-
201
8
06-
01-
201
8
701
2.5
974
2.5
273
0 11532
509
561
PLASTIC
WATERING
CAN 12.4
18.9
8
18
0
93
0
84
0
01-
01-
201
8
06-
01-
201
8
104
16
159
43.
2
552
7.2 937.95
509
931
OSCILLATIN
G
SPRINKLER 5.07 6.98 35
18
5
14
0
10-
12-
201
7
20-
12-
201
7
709
.8
977
.2
267
.4 218.5
509
981
IMPULSE
SPRINKLER 0.19 0.29
55
0
11
50
11
00
20-
10-
201
7
01-
01-
201
8 209 319 110 4240
512
778
COMPACT
DOUBLE
BOWEL SNK 10.6
13.9
5
15
0
40
0
20
0
02-
10-
201
7
08-
10-
201
7
212
0
279
0 670 12710
551
340
DISH
DRAINER 0.31 0.4
10
00
41
00
0
10
00
0
06-
10-
201
7
09-
10-
201
7
310
0
400
0 900 9630
584
072
22" SELF-
PROPELLED
MOW 3.21 5.09
14
00
30
00
13
90
30-
06-
201
7
15-
07-
201
7
446
1.9
707
5.1
261
3.2 5530
585
322
18" REEL
MOWER
44.2
4
58.9
8 75
12
5
11
6
15-
06-
201
7
01-
07-
201
7
513
1.8
4
684
1.6
8
170
9.8
4 11577.6
599
912
18"
BUSHWACKE
R TRIMMER
36.1
8
46.9
8
12
0
32
0
11
2
15-
06-
201
7
01-
07-
201
7
405
2.1
6
526
1.7
6
120
9.6 7325.5
631
140 CAKE PAN 2.99 3.12
85
0
24
50
45
0
30-
09-
201
7
15-
10-
201
7
134
5.5
140
4
58.
5 1270.8
631
190 LOAF PAN
14.1
2
19.9
8 40 90 55
23-
10-
201
7
30-
10-
201
7
776
.6
109
8.9
322
.3 7210
669
611
3 CU FT
WHEELBARR
OW 4.12 5.29
55
0
17
50
53
6
10-
08-
201
7
30-
08-
201
7
220
8.3
2
283
5.4
4
627
.12 2480
803
760
7 PC
KITCHEN
TOOL SET 8
13.9
9
11
0
31
0
19
0
15-
08-
201
7
31-
08-
201
7
152
0
265
8.1
113
8.1 5676.4
DIAGONAL 6.17 12.9 82 92 91 03- 10- 563 118 622 1935.1

Professional Ethics in Auditing 20
934
423
CUTTING
PLIERS 8 0 0 4
10-
201
7
08-
201
7
9.3
8
63.
72
4.3
4
935
298
HYDROMOU
LD SWING-
SPOUT 0.37 0.5
12
30
52
30
12
00
20-
10-
201
7
01-
01-
201
8 444 600 156 2142
935
428
DUAL LEVER
FAUCET -
SPRAY 6.12 8
15
0
35
0
10
8
09-
10-
201
7
01-
11-
201
7
660
.96 864
203
.04 1980.9
938
748
CHROME
ANGLE
1/2X3/8 COM 2.79 3.12
30
0
71
0
61
0
01-
10-
201
7
01-
01-
201
8
170
1.9
190
3.2
201
.3 1242
938
998
CHROME ST
1/2"X
3/8"COMP 4.14 5.99
10
0
30
0
21
0
01-
10-
201
7
01-
01-
201
8
869
.4
125
7.9
388
.5 1287.6
220
451
5
PANELLING
BIRCH 4X8
10.7
3
14.9
5 60
12
0
11
0
10-
12-
201
7
20-
12-
201
7
118
0.3
164
4.5
464
.2 1455.3
220
880
5
PANELLING
PINE 4X8 5.94 7.95
10
5
24
5
23
5
10-
12-
201
7
20-
12-
201
7
139
5.9
186
8.2
5
472
.35 6034.05
221
054
5
2X3 2&B
PER LINEAL
36.5
7
51.9
8 65
16
5
14
5
09-
08-
201
7
13-
08-
201
7
530
2.6
5
753
7.1
223
4.4
5 3380
248
440
5
PLYWOOD
4X8X 1/4 GIS 5.2 6.63
45
0
65
0
60
0
10-
01-
201
8
15-
01-
201
8
312
0
397
8 858 1369.64
248
441
5
PLYWOOD
4X8X 1/2 GIS
14.1
2
21.9
8 12 97 60
01-
01-
201
8
06-
01-
201
8
847
.2
131
8.8
471
.6 1224
248
442
5
PLYWOOD
4X8X 3/4 GIS 2.88 3.79
17
5
42
5
11
8
10-
01-
201
8
15-
01-
201
8
339
.84
447
.22
107
.38 3416
248
443
5
PLYWOOD
4X8X 1/4
REJECT 4.88 5.69
45
0
70
0
50
0
10-
01-
201
8
15-
01-
201
8
244
0
284
5 405 1674
253
015
5
CEDAR
STRAPPING
PER/FT 2.79 3.12
40
0
60
0
53
0
01-
10-
201
7
01-
01-
201
8
147
8.7
165
3.6
174
.9 3125.76
272
030
5
1X8 SHIPLAP
PER MFBM
21.1
2
27.9
8 48
14
8 47
15-
06-
201
7
01-
07-
201
7
992
.64
131
5.0
6
322
.42 19060
272
061
5
2X4
RANDOM
PER MFBM
381.
2
499.
98 0 50 30
09-
08-
201
7
13-
08-
201
7
114
36
149
99.
4
356
3.4 3566.8

Professional Ethics in Auditing 21
277
001
5
2X8 2&B
PER LINEAL 4.82 9.99
74
0
74
0
71
4
10-
08-
201
7
30-
09-
201
7
344
1.4
8
713
2.8
6
369
1.3
8 953.6
378
841
1
1" GARDEN
HOSE
23.8
4
52.9
8 0 40 -8
04-
02-
201
7
05-
02-
201
7
190
.72
-
423
.84
-
614
.56 41116.95
390
371
2
FISH N
FILLET
BOARD 6.87 9.99
98
5
59
85
46
0
10-
10-
201
7
18-
10-
201
7
316
0.2
459
5.4
143
5.2 3685.2
394
637
2
TEHO ROD
AND REEL 4.98 7.79
50
0
74
0
62
4
10-
04-
201
8
30-
04-
201
8
310
7.5
2
486
0.9
6
175
3.4
4 9108
397
304
2
MORA ICE
DRILL EXTN 27.6
39.9
8 90
33
0
23
0
19-
11-
201
7
31-
08-
201
7
634
8
919
5.4
284
7.4 2296
410
031
2
COOPER
HOCKEY
HELMET 2.8 3.7
32
0
82
0
34
5
02-
10-
201
7
08-
10-
201
7 966
127
6.5
310
.5 8460
410
431
2
SNOW-JET
MOBILE 9.4
14.9
8
14
0
90
0
87
5
30-
03-
201
8
01-
05-
201
8
822
5
131
07.
5
488
2.5 11472.9
410
651
2
HOCKEY
PANTS 6.87 9.99
42
0
16
70
15
00
10-
10-
201
7
18-
10-
201
7
103
05
149
85
468
0 9824.1
410
861
2
ESKIMO
TOBOGGAN
6FT 6.87 9.99
78
0
14
30
12
90
10-
10-
201
7
18-
10-
201
7
886
2.3
128
87.
1
402
4.8 3315.5
411
216
2
CURLING
SLIDERS 3.49 3.85
45
0
95
0
30
0
02-
10-
201
7
08-
10-
201
7
104
7
115
5 108 16154
412
133
2
MOUTH
GUARD 39.4
64.9
8
11
0
41
0
40
0
19-
11-
201
7
31-
08-
201
7
157
60
259
92
102
32 2760
412
871
2
NEOLITE
SKATE
GUARDS 6.9 9.99
15
0
40
0
38
0
01-
12-
201
7
10-
12-
201
7
262
2
379
6.2
117
4.2 868.6
412
881
2
COOPER
SPORTS
BAG 1.01 1.19
36
0
86
0
45
0
02-
10-
201
7
08-
10-
201
7
454
.5
535
.5 81 2357.26
412
893
2
NOSE &
MOUTH
GUARD
27.4
1
32.9
5 36 86 75
10-
12-
201
7
20-
12-
201
7
205
5.7
5
247
1.2
5
415
.5 1142.4
413
057
2
BANANA
PEEL SLIDER
8.4 12.9
9
36 13
6
13
2
15-
09-
201
31-
08-
201
110
8.8
171
4.6
8
605
.88
41082.6

Professional Ethics in Auditing 22
7 7
413
311
2
HOCKEY
NET SET 6.87 9.99
98
0
59
80
87
0
10-
10-
201
7
18-
10-
201
7
597
6.9
869
1.3
271
4.4 8551.4
413
937
2 WAX KIT
10.1
2
16.9
8
62
0
84
5
79
5
12-
05-
201
8
13-
05-
201
8
804
5.4
134
99.
1
545
3.7 990
414
003
2
MENS
SNOSHOES 6 7.98 65
16
5 55
03-
11-
201
7
08-
11-
201
7 330
438
.9
108
.9 2400
414
481
2
TRUNK SKI
CARRIER 5 6.98
30
0
48
0
41
2
10-
04-
201
8
30-
04-
201
8
206
0
287
5.7
6
815
.76 3335
418
843
2
LADIES
FIGURE
SKATES 2.3 2.99
60
0
14
50
13
00
20-
10-
201
7
01-
01-
201
8
299
0
388
7 897 2793
419
526
2
SNOWSHOE
HARNESS 3.99 4.69
15
0
70
0
62
5
30-
03-
201
8
01-
05-
201
8
249
3.7
5
293
1.2
5
437
.5 1791.36
425
500
3
PARKER
PROPANE
KIT (7PC)
24.8
8
54.9
9 12 72 64
20-
12-
201
7
31-
08-
201
7
159
2.3
2
351
9.3
6
192
7.0
4 0
Total 1126649

Professional Ethics in Auditing 23
Assertion 2 Completeness
Audit query-2
Are the inventory records maintained correctly and
completely?
Audit Object Verifying inventory records
Audit Assertion Correctness and completeness
Audit Test (1) Matching book records with invoices
Audit Finding Mistakes are identified in annexure-1 given below
12393
8
NEOPRENE ROOF
FLASH 3" 8.8
13.
98 50 50 0
01-12-
2017
10-12-
2017 0 0
24175
4
STEEL ROUTER
TABLE 8.4
14.
98 75
27
5 0
30-03-
2018
01-05-
2018 0 0
36416
3
TAP & DIE SET 41
PIECES
49.
6
69.
98
65
0
18
50
-
1
2
30-03-
2018
01-05-
2018
-
595.
2
-
839.7
6
37884
11 1" GARDEN HOSE
23.
84
52.
98 0 40 -8
04-02-
2017
05-02-
2017
190.
72
-
423.8
4
Assertion 3 Existence
Audit
query-3 Is the inventory that is reflecting in the financial statements, in actually in existence?
Audit
Object Confirming the existence of inventory
Audit
Assertio
n Existence
Audit
Test (1) Matching the inventory record with the actual units lying in inventory warehouses.
Audit
Finding
Since physical verification of inventory was not possible, existence of inventory could
not be verified.
Prod_N
o Prod_Name Stock
10011 HOSE HANGER 2430
30323 LONG NOSE PLIERS 7" 85
69591 4 CU FT WHEELBARROW 820
81001 SUPER CALLUM LEAF MULCH 1800
100306 CYLINDRICAL LOCK SET BLK 1020
100316 BATH LOCK SET BRASS 390
100336 BATH LOCK SET COPPER 650
100356 BATH LOCK SET ALUMINUM 140
100818 1/2" 90 DEGREE ELBOW COP 124
101018 1/2" 45 DEGREE ELBOW COP 162
102066 CLASSIC ENTRANCE SET BLK 450
102086 COLONIAL ENTRANCE SET BR 245
102096 SEVILLE ENTRANCE SET BR 235
102106 CAPE COD ENTR SET BLK 650
102116 CAPE COD ENTR SET BR 540
102618 1/2" SOFT TUBING 30'COIL 150

Professional Ethics in Auditing 24
102628 R161D TUBING 1/2" -12' 64
102710 ALUMINUM TEAPOT 8 CUP 340
102840 PRESSURE COOKER 8QT 56
102918 1/2" TEE COPPER TO COP 305
104177 LATEX SEMI-GLOSS LILAC 290
104327 LATEX SEMI-GLOSS YELLOW 5800
104347 LATEX SEMI-GLOSS ORANGE 180
104377 LATEX SEMI-GLOSS GREEN 175
104397 LATEX SEMI-GLOSS CARAMEL 1730
104657 LATEX SEMI-GLOSS PINK 195
104677 LATEX SEMI-GLOSS APRICOT 6400
106218 1/2" GATE VALVE COPPER 275
112276 MATCHING DOOR KNOCKERBLK 290
112296 LION DOOR KNOCKER BR 230
112356 MATCHING DOOR KNOCKER BR 80
119040 BLANCHER 700
122158 Y FITTING 4" 1850
123438 ADAPTER FIBERCAST 3"X4" 112
123938 NEOPRENE ROOF FLASH 3" 50
123968 REDVGING TY 3"X3"X1" 275
124518 DRAINAGE TY 3" 420
126008 1/2" CPVC PLASTIC PIPE 475
126058 1/2" CPVC MALE ADAPTER 300
126308 1/2" CPVC PIPE STRAP 80
134420 VEGETABLE STEAMER 850
135060 192 OZ DUTCH OVEN 195
155150 STEP-ON CAN 1300
155160 1 SHELF BREADBOX 60
155170 4 PC CANISTER SET 165
200306 CYLINDRICAL LOCK SET BR 1410
207220 NAPKIN & RELISH HOLDER 210
217066 ALUMINUM DOOR 250
220074 3/8" COMPACT DRILL PRESS 95
221496 WHITE ENAMEL GRILL 2100
221506 BLACK ENAMEL GRILL 1150
221676 PNEUMATIC DOOR CLOSER 350
224984 ROUTER BOX 880
225014 6 PC WOODBORIN SET 450
225934 MASONRY DRILL SET 120
226054 12 PC PILOT BIT SET 320
226620 CAKE DECORATING SET 2348
232194 12 SP AUTO SCROLLER SAW 294
240284 FORMICA CUTTING BIT 2020
240664 SHAPENER FOR 1/4" BITS 315
240884 ADJ EDGE GUIDE 225
241314 ROUT-A-FORM PANTOGRAPH 340
241754 STEEL ROUTER TABLE 275
243224 2 SP ROTARY SANDER 900
247034 SET OF 6 ROTARY CUTTERS 275
270324 RADIAL ARM SAW 10" HD 81000
270354 MOLDING HEAD GUARD 295
276054 21 PC MONO-CUTTER SET 10100
277154 ADJUSTABLE DADO 5500
302303 MITRE BOX 21" 167

Professional Ethics in Auditing 25
302903 4 PC CHISEL SET 540
303343 STRAIGHT CLAW HAMMER 1500
303403 12 OZ BALL PEIN HAMMER 100
303413 8 OZ BALL PEIN HAMMER 240
305603 #4 SMOOTH PLANE 60
310890 MINCER 225
311800 PASTA NOODLE MAKER 290
311990 DIET SCALE 41000
321663 SCREW DRIVER 1/8 X 4 SL 235
321683 SCREW DRIVER 1/4 X 6 SL 190
322303 SCREW DRIVER NO.3 PHILL 345
324803 ARC JOINT PLIERS 6" 510
324883 ARC JOINT PLIERS 16" 245
364163 TAP & DIE SET 41 PIECES 1850
412553 6 PC OPEN END WRENCH SET 1725
412753 6 PC BOX END WRENCH SET 4200
412903 8 PC METRIC HEX KEYS 124
414283 METRIC SOCKET SET 11 PC 270
414313 METRIC TOOL SET 3/8" DR 335
435438 DUAL LEVER FAUCET-NO-SPR 415
501051 11" SPADING FORK 148
501541 24" LEAF RAKE 210
501551 20" LEAF RAKE 1290
504061 54" EDGING TURF 925
504761 6" EDGE TRIMMER 900
506331 5 PIECE GARDEN TOOL SET 1400
507811 50' RUBBER HOSE 725
507841 25' VINYL HOSE 35
507851 50' VINYL HOSE 1510
508191 PISTOL GRIP NOZZLE 525
509561 PLASTIC WATERING CAN 930
509931 OSCILLATING SPRINKLER 185
509981 IMPULSE SPRINKLER 1150
512778 COMPACT DOUBLE BOWEL SNK 400
551340 DISH DRAINER 41000
584072 22" SELF-PROPELLED MOW 3000
585322 18" REEL MOWER 125
599912 18" BUSHWACKER TRIMMER 320
631140 CAKE PAN 2450
631190 LOAF PAN 90
669611 3 CU FT WHEELBARROW 1750
803760 7 PC KITCHEN TOOL SET 310
934423 DIAGONAL CUTTING PLIERS 920
935298 HYDROMOULD SWING-SPOUT 5230
935428 DUAL LEVER FAUCET -SPRAY 350
938748 CHROME ANGLE 1/2X3/8 COM 710
938998 CHROME ST 1/2"X 3/8"COMP 300
2204515 PANELLING BIRCH 4X8 120
2208805 PANELLING PINE 4X8 245
2210545 2X3 2&B PER LINEAL 165
2484405 PLYWOOD 4X8X 1/4 GIS 650
2484415 PLYWOOD 4X8X 1/2 GIS 97
2484425 PLYWOOD 4X8X 3/4 GIS 425
2484435 PLYWOOD 4X8X 1/4 REJECT 700

Professional Ethics in Auditing 26
2530155 CEDAR STRAPPING PER/FT 600
2720305 1X8 SHIPLAP PER MFBM 148
2720615 2X4 RANDOM PER MFBM 50
2770015 2X8 2&B PER LINEAL 740
3788411 1" GARDEN HOSE 40
3903712 FISH N FILLET BOARD 5985
3946372 TEHO ROD AND REEL 740
3973042 MORA ICE DRILL EXTN 330
4100312 COOPER HOCKEY HELMET 820
4104312 SNOW-JET MOBILE 900
4106512 HOCKEY PANTS 1670
4108612 ESKIMO TOBOGGAN 6FT 1430
4112162 CURLING SLIDERS 950
4121332 MOUTH GUARD 410
4128712 NEOLITE SKATE GUARDS 400
4128812 COOPER SPORTS BAG 860
4128932 NOSE & MOUTH GUARD 86
4130572 BANANA PEEL SLIDER 136
4133112 HOCKEY NET SET 5980
4139372 WAX KIT 845
4140032 MENS SNOSHOES 165
4144812 TRUNK SKI CARRIER 480
4188432 LADIES FIGURE SKATES 1450
4195262 SNOWSHOE HARNESS 700
4255003 PARKER PROPANE KIT (7PC) 72
Assertion 4 Ownership and Existence
Audit query-4
Is the value of inventory reported in the financial statements in actual possession
of company?
Audit Object Verifying ownership and possession of inventory
Audit
Assertion Ownership and Possession
Audit Test (1)
Determining whether any inventory item possessed by third party is recorded in
the financial statements of the company.
Audit Finding
There is a wide range of inventory items in the records of the company for which
no categorisation is done. Hence there was a great ambiguity about company's
own inventory range.

Professional Ethics in Auditing 27
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Professional Ethics in Auditing 28
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Professional Ethics in Auditing 29
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