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Sir substantive procedure for audit of year end inventory
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substantive procedure for valuation of inventory , are both of these requirements same thing or are these different?Valuation is only one of the assertions relevant to inventory. See the assertions relevant to account balances.
Sir in substantive procedure for valuation of inventory can we write that hire services of expert to find value of inventory. Is this correct?
Inventory is normally valued at cost and this is most easily obtained by looking at invoices.
Experts would be necessary in some cases to estimate NRV. However, there are probably more reliably ways of doing that like seeing what the inventory is actually selling for.It might be needed in some specialist industries like gem-stones where the auditor wouldn’t really know which gem was which and might ask an expert to assist.
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