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Maam in case of perpetual inventory count, if some inventory lines are omitted then what do we say as a part of audit risk? Inventory will be understated or misstated?
i thought it would be clearly understated but apparently my kit states that it will be misstated. Can you pls provide a rationale for that?
As i have tried to explain to you before e.g. here https://opentuition.com/topic/perpetual-inventory-count-3 – the process is a control – if a test count is omitted during the year that does NOT mean that the item is excluded from the inventory records that are used for the y/e inventory valuation.