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for inventory issues when writing auditors response, i saw a line saying ” carry out detailed nrv testing”
can u tell me what does it mean
NRV = net realisable value.
Inventory should be valued at the lower of cost and NRV.
To test for cost auditors will look at recent purchase invoices.
To test for NRV they will look at the price of recent sales and also check that the items still seem to be selling well (in case they have to be written down to generate sales).
NRV = net realisable value.
Inventory should be valued at the lower of cost and NRV.
To test for cost auditors will look at recent purchase invoices.
To test for NRV they will look at the price of recent sales and also check that the items still seem to be selling well (in case they have to be written down to generate sales).
NRV = net realisable value.
Inventory should be valued at the lower of cost and NRV.
To test for cost auditors will look at recent purchase invoices.
To test for NRV they will look at the price of recent sales and also check that the items still seem to be selling well (in case they have to be written down to generate sales).
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