13 Januari 2026

Inventory Records: With vs Without

A. Entities without inventory records
Rely heavily on stocktake / physical count at the end of the reporting period. 

B. Entities with comprehensive inventory records (perpetual system)

Auditor should do:
  • TOC (Tests of Controls) over recording/maintaining inventory records
  • Observation of physical inventory (existence)
  • Verification of cost and net realizable value (NRV)

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