The audit procedures for inventory and related cost of sales accounts frequently are typically extensive in an audit engagement.

Question

Quizplus · Accepted Answer

Inventory and related cost of sales accounts are significant accounts that have a material impact on a company's financial statements. As a result, the audit procedures for these accounts usually involve a thorough examination of the company's inventory system, including physical inventory counts, valuation methods, and the accuracy of cost of sales calculations. Therefore, the audit procedures for inventory and related cost of sales accounts are typically extensive in an audit engagement.

The Audit Procedures for Inventory and Related Cost of Sales