Auditing INVENTORY - substantive procedures

[@mohafzal2790]

Amanda, you’re the best, your short videos are the perfect supplement to any audit and assurance students studies. Pleased to share that I passed my advanced audit ACCA exam on the first attempt! Couldn’t have done without your help! Much love, keep shining!

[@amandalovestoaudit]

This is such great news Moh!!!! Congratulations!!!

[@essentialtutors]

Much love from South Africa

[@amandalovestoaudit]

Thank you!

[@Optimusprime809]

Thanks Amanda! Got my uni audit exam in 2 days, you've been a big help! Helped me understand the difference between a substantive test and a test of controls in a few minutes, when a whole 2 lectures couldn't make me understand!

[@amandalovestoaudit]

Good luck in your exam!! Make sure you get in touch with me once you get your results and send through an update - you've got this!

[@Optimusprime809]

@@amandalovestoaudit I will! Thanks Amanda, you're the 8th wonder of the world!

[@ihabziyad8611]

you are the top in Auditing , THANKS Amanda

[@amandalovestoaudit]

You're welcome!

[@malopemmalope558]

Hi Amanda, thank you for the great work your videos are really what i needed all along.... all the way from South Africa Pretoria

[@nayanthara885]

I'm from Sri Lanka. Thank you so much for making this vedio. I'm studying for F8 exams. This one is really helpful.

[@amandalovestoaudit]

Thanks Nayan - good luck in your F8 exam 😊

[@ruesie8125]

I'm from Zimbabwe🇿🇼 your videos are very clear, thank you.💫

[@amandalovestoaudit]

Glad you like them!

[@RuthButta]

Big appreciation from Uganda 🇺🇬

[@reshmapanjwani786]

Hi Amanda, thank you for your help. I have a question, how to deal with invention stock counting if it is difficult to physically count inventory for auditor, lets say entity is in Switzerland and auditor is in Australia, then how auditor will gind existence of inventory?

[@elihurumangholope690]

From Tanzania 🇹🇿.. awesome session

[@amandalovestoaudit]

Thank you Elihuruma! Merry Christmas!

[@timothysmith4343]

Hi Amanda, sales include the gross margin, so it should be beginning inventory + purchases - ending inventory (not sales) = COGS.

[@ideasthattpays]

From Nigeria, proudly a Nigerian.

[@MrApoloni13]

4:22 God Bless From Georgia. appreciate due care for audit learning for worldwide.

[@amandalovestoaudit]

Thank you Shalva 😊🙏

[@humairasharudin5968]

Hi,I'm from Malaysia, currently watching your videos for my exam this evening! Thanks for these video !very helpful!!!!!!

[@amandalovestoaudit]

I hope you went really well in your exam - please do let me know how you go when you get the results back 😊

[@humairasharudin5968]

@@amandalovestoaudit hye, my result is quite bad since I have little understanding in audit core theme. Especially in mcq questions do you mind to share tips on how to tackle objective ques in audit?

[@godwinyaofenoo5436]

This is Godwin Fenoo Yao from Czech Republic, yr lectures are very good. thank u.

[@rutendomazengura]

wow you are soo good at explaining substantive procedures

[@bilalahmed-yn1wu]

Followers from Pakistan too. Amazing videos and thank you for contributing to our learning.

[@amandalovestoaudit]

You're very welcome!

[@sresaazzahra8886]

This is the best video. I guess I can done one chapter from Arens book from your 25 minutes video. Thank you very much, Amanda.

[@amandalovestoaudit]

I love the Arens texts - but they can be a bit difficult to read - thanks for your lovely words ☺️❤️

[@loryhs]

thank you so much, i'm from the netherlands and have my national A&A exam tomorrow. love listing to you

[@nchimunyachiimbwe8206]

Hi Nchimunya here, watching from Africa, Zambia

[@amandalovestoaudit]

Hey Nchimunya! Great to see you!

[@warpath5922]

I'm from Guyana and I love your videos.

[@amandalovestoaudit]

Hello Guyana 👋👋👋 thanks for watching and your comment 🙏😊

[@nelsonmuzimbawake6117]

Hi Amanda, could you please explain AVA when stock take is done before the year-end for example two weeks before year-end or a month after the year-end? I have heard about rollback and forward please elaborate.

[@paaronlive]

Hi, Amanda- your videos are the best. Very simplified.

[@osatohanmwenlouisosazee921]

Lovely, this video is so comprehensive, thank you very much.with this knowledge i will make 100% in make exam

[@jubairarangodan5189]

Subscriber from INDIA🇮🇳 Kerala

[@ganiyualao6884]

Appreciate your presentation. I am from Nigeria.

[@amandalovestoaudit]

Thank you for watching and leaving a comment - I really appreciate it 😊🙏

[@Kyle-ic1bm]

So for inventory do you always adopt a mix of tests of control and substantive testing to gather evidence?

[@pecsure]

Hi Amanda, thank you for your lectures. They come in handy so many times for me. Please I would like to ask if you could do Inventory Audit for manufacturers. Thank you.

[@allyssacha]

I am from Thailand, a small business owner Thank you so much, I have been worried about how I should audit inventory and we always have lost our inventory.

[@rachelmulelema3674]

Amanda you are simply the best . Rachel Mulelema from Zambia

[@amandalovestoaudit]

Thank you so much Rachel! Stay safe!

[@udaynataraaj2390]

Lots of love from india

[@rakkelteofilus5108]

Hi Amanda ,you’re the best Love and light from Namibia 🇳🇦

[@amandalovestoaudit]

Hi Rakkel! Thank you!

[@NAISHAACADEMY]

I'm from Uganda, I've just started understanding auditing

[@mercytipitap704]

Hi Amanda Please keep on making auditing videos. Watching from Papua New Guinea

[@amandalovestoaudit]

Thanks Mercy - I'll always keep making videos!

[@phophimutshidziramavheya9512]

Thank you Amanda for such informative videos. All the way from South Africa.

[@amandalovestoaudit]

You’re so welcome!

[@guideinlight8584]

Thanks Amanda! First of all thank you for making such informative, and easy to understand videos. Love from Pakistan

[@clairengugi]

from kenya, your videos are extremely helpful, thanks!!

[@amandalovestoaudit]

Any time Claire! Much love to everyone in Kenya ❤️😊

[@genevalepota7544]

Hey Amanda I'm from South Africa and your videos are really helpful

[@amandalovestoaudit]

That's awesome to hear - thank you!

[@edithkangabe3910]

Thank you Amanda, you are the best

[@desniramadhani530]

Thank you amanda,, your content about audit for inventory very easy to understand,,, i am from indonesia,,,

[@RetroGamerEx]

Hi Amanda, First of all thank you for making such informative, and easy to understand videos. I have a question, in the beginning of this video you said that inventory is not a big deal fro service businesses but what about Hospitals and Healthcare centers who need to keep huge quantities of medicines and disposable stocks to perform services. How we can audit inventories of such businesses. Can you please refer any kind of book or literature that can help me understand how I can do better auditing of Service Sectors. Regards

[@amandalovestoaudit]

Hi Muhammad - I would call hospitals and healthcare a mix because of the large amounts of inventory that you mentioned. Service businesses I consider to be more like law firms, advertising agencies. For hospitals etc - you need to audit the inventory just like any other retailer - of course, focusing on inventory that is material and at greatest risk of misstatement.

[@RetroGamerEx]

@@amandalovestoaudit Thank you Amanda for your reply.

[@edenwilson7996]

I love your content and your explanations. Really helpful, especially exam time.

[@amandalovestoaudit]

Glad you like them!

[@smsm2107]

Hi Miss Amanda.What are your audit procedures on inventory kept at 3rd parties and inventory on bill and hold condition. Can you help.

[@merilvalder5257]

Hey Amanda Your videos are so well structured and definitely interesting. Your videos helped me get a job in Australia .. thank u so very much. ❤️

[@amandalovestoaudit]

That is so amazing to hear Meril - congratulations !!!

[@merilvalder5257]

@@amandalovestoaudit thank you once again :)

[@yibekaladmassu3374]

we have audited past transaction , so how we can test the existence of inventory because the inventory may not be available during an audit

[@anietieekpe3682]

You're great Amanda

[@kdpg_phenomenal9648]

Thanks Amanda! Planning to study there next year from Philippines.

[@amandalovestoaudit]

Hi Dave! Fantastic!

[@kdpg_phenomenal9648]

@@amandalovestoaudit In what Uni are you connected?

[@amandalovestoaudit]

My day job is at the University of Technology Sydney.

[@dawnmc76]

Love the pink hair, and of course your videos!!! I'm a Bachelor of Business student in Auckland, New Zealand.

[@MaganoT_Shipanga]

Namibia 🇳🇦 well explained!

[@itskimslife]

thank you for explaining this from Toronto!

[@amandalovestoaudit]

My pleasure!

[@sham1501-v5u]

Hi! Do you have videos about auditing inventory in a manufacturing industry?

[@jorgeovalle85]

hello Amanda thanks for the info, just wondering when inventory has 3% of materiality? what does it mean?. thansk

[@mohamedelmi7309]

Really like your way of teaching. 😄

[@amandalovestoaudit]

Thank you!

[@anayafun]

Well overview.. Good understanding from point of Auditors eyes

[@amandalovestoaudit]

Thanks Nav 🙏☺️

[@helmorysaulze3483]

Thank you very much for this Dr. All the way from Namibia 👍

[@lawrencenjoroge8383]

Hello, Dr Amanda. I am from Kenya and your videos are Jst perfect. Thank you so much for everything

[@lawrencenjoroge8383]

I am to sit for my first Acca audit exam next week.

[@amandalovestoaudit]

Good luck Lawrence! Please do keep in touch and let us know how you go!

[@margaritarosario4771]

Hi amanda coming from the Philippines!!

[@amandalovestoaudit]

Hey Margarita and everyone else in the Philippines! Stay strong - I have a lot of students with family there and they tell me that many are catching COVID19 - stay safe and well 🙏😊

[@naomiyohana8747]

am Naomi from Tanzania ,a new subscriber in your channel😘

[@sergioberlin332]

Hi Dr Watching from Mauritius Thank you for your videos

[@amandalovestoaudit]

Hi Sergio - thanks for watching! ☺️

[@dipaksahu987]

Thank u Videos are really helpful ,from Bangalore India

[@amandalovestoaudit]

Thank you Dipak! ☺️

[@rashidisaidi1124]

My is Rashid from tanzania .I enjoy your lesson

[@amandalovestoaudit]

Hey Rashidi! Welcome! My one visit to Tanzania was amazing - such friendly and welcoming people 😊

[@rashidisaidi1124]

Thanx Amanda,if possible I would toget you email

[@amandalovestoaudit]

I think it is in the contact details for my channel, or you can send me a DM via my FB page

[@sorsonita715]

Excuse me, is inventory is the same with production cycles? Can you please explain about substantive Procedures - Production cycle, please?

[@amandalovestoaudit]

Hi Sor - yes - this video and the ones after it will cover production and manufacturing - the big issue is in the costing of inventory (the accuracy, valuation and allocation assertion)

[@EthailDagim]

much love from Ethiopia

[@amandalovestoaudit]

Thank you!

[@eliaslungu6604]

All the way from zambia

[@fajarpalopo]

Hello Amanda, love your video, i hope you can answer my question, This Questions are similar to the ones I ask on a cash audit video. When conducting an inventory audit, can questionable or unsupported inventory mutation transactions be taken into consideration in taking an opinion? Even though the final value on the balance sheet matches the stock in the warehouse? What materiality accounts are used, is it inventory or inventory expenses?

[@amandalovestoaudit]

Hi Pajar - any misstatements including unsupported journals should be considered in terms of the performance materiality and the overall impact on the financial statements. If there are unsupported journals - my big question would be - why? And could this be an indicator of some sort of intentional misstatement?

[@joannyanchera4303]

Hi Amanda, your video's have been helpful. Joan from Kenya

[@hasinarafenoarisoa7063]

Could you make videos on audit inventory about purchase or sale in transit, please?

[@hasinarafenoarisoa7063]

and what're the differences between Accuracy, valuation and allocation, please

[@sahillarya06]

Hi Amanda I am from South Africa Please make video on manufacturing

[@cristianlusci4658]

Very helpful and well explained. Thank you , and greetings from Ireland :)

[@abedaahmedcassim862]

Hello Amanda. You are brilliant 😁. Thank you for your lessons and insights. I'm a budding auditor and I need to know what you have studied so that I may be able to do what you do... I am meeting with my manager on Friday and I want to make sure that I explain what I want to study to elevate my career. Again thank you so much ❤🎉

[@financeenthusiast5410]

Hi Amanda. I am from India currently doing my. Chartered accountancy course and wanted to pursue a enterprising career in audit. Is there is any firm for Articleship work at your place? Thank you mam for stuff which are uploaded on your channel.

[@amandalovestoaudit]

Hi - jobs are hard to find these days - my best advice is to keep networking and meeting people to hopefully find an opportunity to gain experience.

[@financeenthusiast5410]

@@amandalovestoaudit thankxx

[@iceblock2442]

In a situation where you know that some inventory is obsolete while doing your planning and the client confirms that indeed the inventory is obsolete and you physically inspect the inventory taking note of the condition but not counting it...do you need to carry out further procedures on that obsolete inventory or simply conclude on that it is obsolete and needs to be written off?

[@amandalovestoaudit]

Oooh - if you think you can rely on the client estimate - it’s should be ok because it is likely not material

[@americanbobtail1]

You increase the sample size for both sheet to floor and floor to sheet for the inventory that is not obsolete. You also note in the inventory count workpapers why you increased the sample size. Materiality has nothing to do with this if you are using PPS or the equivalent stratified sampling.

[@bvumayichatikobo3131]

Good as matured wine, as always Doc, thank you very much, Doc. Indeed under this Covid-19 era and through these livestreams Auditors watch out for being shown empty boxes of inventory.......as you verify Existence......I loved that red flag you raised there,Doc.........and lastly maintain that lovely colourful hairstyle its blending very well with our notes we are copying from your Tablet......kkkkkkk.......bye lots of love from Zim and Africa......(Ndatenda) thank you.

[@amandalovestoaudit]

Ndatenda Bvumayi 🙏🙏 always great to hear from you ☺️

[@mikiharada3292]

Hello Amand! is there any difference in the inventory audit procedures if the client entered into a consignment arrangement? I got so many questions regarding the consignment arrangement, so I want to understand clearly. As textbook just makes me confusing..... Thank you in advance, I love your videos 3>3>

[@amandalovestoaudit]

Hey Miki - consignment definitely does have its own issues. We need to understand the consignment process first - how does the client identify which inventory is on consignment and which is one they own? Different part of the warehouse? A RFID tag? The biggest issue is rights & obligations - so we need to design tests that help ensure inventory is classified and accounted for correctly. Does this help at all?

[@mikiharada3292]

@@amandalovestoaudit Thank you, Amanda! I designed the test of details for R/O, am I on the right track? Select a sample of consignment goods and compare it against the inventory listing to confirm consignment goods are not recorded in the inventory list. This sounds me the test of details for existence... Also, do you have a video on how to audit the provision? BTY Im doing CAANZ, and my background is TAX so Im really struggling the AAA module... but your videos are really helping me! Thank you Amanda

[@julietoluchiojoh2174]

Thank you very much. From Nigeria

[@PezerettaDarling]

Hi Amanda, just stumbled upon your videos and I am really learning a lot from your content. I am doing my undergraduate degree in accounting and cis and I am interested in focusing on audit.

[@nwenisoe3529]

Thanks. I’m from Myanmar.

[@rohitsaha428]

LoveFrom India.

[@amandalovestoaudit]

Thank you Rohit!

[@usmanajmal8376]

Really helpful for f8 ....from pakistan

[@amandalovestoaudit]

Thanks Usman - don’t forget to check out my free study guide online - but.Ly/studyaudit ☺️. Good luck in your exam 😊

[@usmanajmal8376]

@@amandalovestoaudit I will surely check.....Thank you ❤️

[@igorvorobjov]

Hello Amanda, Nice hair color :) I have a question about stock taking. If company have 30 or more shops in all country, and all off these shops have material numbers of stocks, should the auditor paticipate in all of these stock takings? Thank you :) Greetings from Lithuania (Europe)

[@amandalovestoaudit]

Hi Igor - a great question :) That would be almost physically impossible! But you might select some stores that are higher risk of misstatement and conduct test counts.

[@nilushalakmal3027]

You’re the best.very helpful. 😘

[@amandalovestoaudit]

Happy to help Nilusha!

[@Krishnawisdompath]

Please provide some lecture for audit interview tips for big4. Please

[@Mohammad-pp8tn]

Thanks from Saudi Arabia

[@amandalovestoaudit]

You are very welcome 😊

[@taalibjayah8742]

Hi Amanda, does this method apply for retailers too?

[@amandalovestoaudit]

Hi - it should be the same ☺️

[@kawther7842]

Thanks😩❤️. I wish to be a student with you

[@amandalovestoaudit]

I’ll only be teaching first year in 2022 - it might mean I do some KZbin live streams ☺️

[@michaelmads9641]

I have my exam in 2weeks. Your videos are super helpful :)

[@amandalovestoaudit]

Best of luck Michael!

[@RaheSakoon]

Awesome information

[@humayunkhan631]

When you going to upload Auditing inventory of manufacturing concern company? I'm waiting for that Miss...

[@ravinderkumar996]

Hi Amanda from India. What is the difference between compilation sheet and test counts. This is always confusing. Can you help.

[@amandalovestoaudit]

The key is in the words - “compilation” is putting everything together - it is almost like the summary. But “test counts” are where the auditor picks a few items the client staff have counted and checked and reperform.

[@antonykayange5025]

Watching from Malawi

[@pineappleorange9290]

Thank lovely sister.my ability is low But I try it.😊😊😊

[@oneatatimemrchow]

Amanda , Thank you so much for the explanation, it is really clear.

[@amandalovestoaudit]

You're welcome Chai :)

[@SwayTheBeast]

Asc 606? Please and cost methods weighted average

[@amandalovestoaudit]

Hi - I’m not an expert on ASC606 - but I did a quick Google and there are lots of articles talking about the differences. Once you understand those - the way you’d approach auditing inventory would still be the same. That is, identify assertions most at risk and design procedures to determine whether the account meets the applicable reporting framework (which could be IFRS15 or ASC 606). So you don’t need a video on it - just apply the same principles ☺️

[@authurmutemwa4553]

Thank you Amanda , this was helpful. I also have a request Do u mind doing a video on how to audit share based payments as well as Employees benefits IAS 19

[@authurmutemwa4553]

I'm in South Africa 🌻

[@amandalovestoaudit]

Employee entitlements has been covered here - kzbin.info/www/bejne/bqupnYJviqt9pKs

[@ishikatrivedi2526]

Thank you so much for this!

[@amandalovestoaudit]

You are so welcome Ishika 😊 Hope you are safe and well in your part of the world 😊

[@kranthipriya8285]

Thank you very much Mam

[@GIFTSGOMES]

I'm from south africa ❤

[@thdusqkr0311]

Don't we usually distinguish current vs non-current in inventory on inventory cycle of the goods? In other words, because wine's inventory cycle, from production to selling, is usually more than a year, even though they are stored longer by aging, wouldn't it still be considered a current inventory?

[@amandalovestoaudit]

Hi - yes - in more complex inventory examples we do make that distinction and wine is the perfect example ☺️. The only wine that is current is the vintage you plan to sell that year.

[@trailexodus2857]

Soooo educative

[@annrikeshapillai9702]

Hey, i am ann and i am from doha