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Prakul BanthiaPrakul Banthia asked 1 year ago

if an auditor is not able to value inventory  due to nature  so can he appoint a scientist to value on his behalf and present the report for  the same?(example chemical which is volatile) 

1 Answers
RaviRavi Staff answered 12 months ago

If auditor is not able to attend physical verification of inventory, than he has to performed alternative procedures.
Alternative procedures includes many things seeing documents, using ratio analysis, preparing reconciliation seeing subsequent sale etc.
Yes using expert can be one of the alternative procedure.
We have to select alternative procedure keeping in mind materiality of the inventory, cost and time involved , so appointing scientist may not be the best alternative procedure every time.
Team AG.

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