Objective of Stocktake - Unit 17

greide

Hi,

I scribbled some revision tips down in college before I left for half term as we do not have another lesson until our simulation.

One of my notes says "what are the objective of stocktaking?"

I have really confused myself as I cannot figure out whether this would mean from the auditors perspective as it is an auditing module or whether this is just a general question???

Any help would be appreciated!!!

Steve Collings

Hi,

The auditor will attend the stock take primarily to ensure that the procedures adopted by management at the stock count will not result in material misstatement in relation to the final stock valuation.

Attendance at stock take is an observance procedure to ensure that the stock exists at the balance sheet date and is correctly valued.

Hope that helps.

Regards
Steve