Auditing and Assurance Standards and Guidance

Auditing Standards (Ireland)

FRC ISAs (UK and Ireland) applicable for periods beginning on or after 15 December 2010 but before 17 June 2016

ISA (UK and Ireland) 501 Audit evidence - specific considerations for selected items

Application and Other Explanatory Material

Inventory

Inventory under the Custody and Control of a Third Party

Other Audit Procedures (Ref: Para. 8(b) )

Depending on the circumstances, for example where information is obtained that raises doubt about the integrity and objectivity of the third party, the auditor may consider it appropriate to perform other audit procedures instead of, or in addition to, confirmation with the third party. Examples of other audit procedures include:

Attending, or arranging for another auditor to attend, the third party's physical counting of inventory, if practicable.

Obtaining another auditor's report, or a service auditor's report, on the adequacy of the third party's internal control for ensuring that inventory is properly counted and adequately safeguarded.

Inspecting documentation regarding inventory held by third parties, for example, warehouse receipts.

Requesting confirmation from other parties when inventory has been pledged as collateral.