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damaged inventory

Former userFormer user5y ago

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KimKimTutor5y ago#1
Audit risk is that inventory is overstated and hence profit is overstated. You are correct that writing closing inventory down to NRV results (automatically) to recognition of expense in profit or loss. "This write down should have been charged to profit or loss." is really a statement of fact/conclusion on how it should have been recognised. Per se, it does not explain/describe the risk.
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