Audit procedures which an auditor should perform when planning attendance at a Company stock take.
 1.Review and planning:

The auditor must review prior year’s working papers to enable himself to familiarize with the nature volume and location of inventories. Consideration must be made with regard to the controlling and recording procedures over inventory and the timing of the count.

 2.Problem identification and reliance:

The must identify problem areas in relation to the system of internal control and decide whether reliance can be placed on internal auditors. This also assists in risk assessment and timing audit procedures.

 3.Risk and materiality:

Assessment of inherent, control and detection risks is necessary for a comprehensive stocktaking audit programme and this will assist the auditor to establish materiality levels before undertaking the stock count.

 4.Inventory held by third parties:

Arrangement must be made to ensures that third party holding inventories confirms .Depending on materiality of the inventory held the auditor should also consider the integrity and independence of the third party and whether it is necessary to arrange for other auditors to observe the count or whether it is sufficient to obtain another auditor’s report on the adequacy of the third party’s systems or merely to inspect relevant documentation held at client place.

 5.Expert assistance:

Assessment must be made by the auditor regarding the nature of the inventories thus if the inventory is considered specialized the auditor must arrange for expert help.

 6.Counting instructions:

The auditor must examine the client’s counting instructions in order to establish whether or not there are adequate and if not adequate discussions must be made with the client with view of improving they prior to the inventory count.

 7.Touring of