what auditors do?

What do auditor look for in fraudulent financial reporting fromcompanies

24. What is the purpose of the auditor’s observation of the taking of the physical inventory?

25. What is the purpose of the auditor’s making and recording test counts of inventory quantities during their observation of the taking of the physical inventory? Explain.

26. List at least three audit procedures that auditors would employ to detect slow moving or obsolete inventory.

27. What part, if any, do the auditors play in the client’s planning for the physical inventory?

External auditors should consider the work of internal auditorsin their assessment of control risk. a. Are internal auditorsindependent of management? Explain. b. What is the differencebetween the primary objective of the external auditors and that ofinternal auditors? Explain. c. Discuss the factors that should beconsidered by the external auditors in deciding how much, if any,reliance should be placed on the work of the internal auditors.