The client recorded 100 Dell desktop computers in the inventory account on 30 June 2021. Each costs $2800. The auditor performed a physical count on 6 July 2021 and found 80 units in the warehouse. Which of the following follow-up procedures is not directly relevant for auditors to verify the existence of inventory at the financial year-end?
Auditors enquire various warehouse staff about inventory disposals between 1 July and 6 July.
The auditor takes a sample of sales invoices and matches them to shipping documents.
For the missing inventory items without legitimate explanation, the auditor recommends the client adjust for the amount overstated.
The auditor could obtain an inventory movement register from the client warehouse manager to see if the client sold this model between 1 July and 6 July.
Auditors enquire the warehouse manager about inventory disposals between 1 July and 6 July.
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