CAT / FIA FAU Syllabus D. Audit Evidence And Procedures - Inventory - and the Assertions - Notes 14 / 18
These are the main risks of misstatement for Inventory
Completeness Assertion
Not all stock owned is included in accounts
Existence Assertion
Not all stock included in accounts actually exists
Valuation Assertion
Stock is incorrectly valued
Due to incorrect cost allocation
Not valuing at NRV (if lower than cost)
Rights & Obligation Assertion
Not all inventory belongs to the client
Presentation and disclosure assertion
Inventory is incorrectly classified
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