CPA Auditing and Attestation (AUD)

Certified Public Accountant Auditing and Attestation examination.

Audit Fundamentals & Principles Ethics and Professional Responsibilities Audit Evidence & Documentation

Advanced Topics

Internal Controls & Risk Assessment Audit Sampling & Analytical Procedures Audit Reports & Opinions

Practical Applications

Auditing Revenue Cycles Testing Inventory & Physical Counts Auditing Information Systems

Study Strategies

Time Management for the AUD Exam Mastering Multiple Choice & Simulations Active Learning Techniques

Audit Fundamentals &...Ethics and Professio...Audit Evidence & Doc...Internal Controls & ...Audit Sampling & Ana...Audit Reports & Opin...Auditing Revenue Cyc...Testing Inventory & ...Auditing Information...Time Management for ...Mastering Multiple C...Active Learning Tech...

Practical Applications

Testing Inventory & Physical Counts

Why Inventory Matters

Inventory is a major asset and frequent source of errors or fraud. Auditors must verify its existence, valuation, and proper recording.

Audit Steps

Observe physical inventory counts.
Test pricing and costing methods.
Reconcile inventory records to general ledger.

Practical Impact

These steps ensure that financial statements reflect true inventory values, preventing overstatement or understatement.

Examples

A CPA attends a warehouse count to observe procedures.
An auditor recalculates inventory valuation using FIFO or LIFO.

Auditing Revenue Cycles

8 of 12

Auditing Information Systems