Auditguru Auditguru Frequently Asked Questions(FAQ) Auditguru Auditguru
 Meet Us Here
Atharva Apte asked 1 year ago

CA Inter ICAI Case Scenario 1.2 – JJ Associates
 
Which of the following cluster consists of likely inappropriate combination?
 
a) Nature of inventory, timing of physical inventory counting and stages of completion of WIP
b) Nature of inventory, timing of physical inventory counting and valuation method of inventory
c) Nature of inventory, timing of physical inventory counting and consideration regarding maintenance of perpetual inventory system
d) ROMM related to inventory, nature of IC pertaining to inventory, considerations regarding maintenance of perpetual inventory system.
The answer given is B. I am not clear with the reason. Please explain why.

1 Answers
RaviRavi Staff answered 1 year ago

SA 501 give factors to be considered while planning physical verification
all points from a to d are covered in these factors except valuation method of inventory 
and further SA 501 focus on existence and condition of inventory and not valuation of inventory

Call Back Request