If the auditor's test counts do not match with the test counts performed by the employees,...

If the auditor's test counts do not match with the test counts performed by the employees, what are some reasons as to why this may have occurred? What are some additional steps that may be required by the auditor?

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Expert Solution

In case, the auditor's test counts do not match with the test counts performed by the employees, it means that the inventory has been under process in the operation which are required to be counted by the auditor to match with that of employee's count.

The reasons could be 1) The production or operation department has called up inventory which has not finalised and in process. 2) The finished goods are in process of delivery to customer and while counting was done, the goods has not reach-out to delivery point. So, the employee has counted these under Inventory.

As an additional steps, the auditor has to add following in the inventory counted at the Store to reach out to employee's counted figure:

a) The auditor has to count all the inventory under process in operation.

b) To include the finished goods which are under delivery process to client and has not reach-out to delivery point.

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ekkarill92 answered 7 months ago

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