| 16. | When the auditor attends an inventory count in compliance with ISA (UK and Ireland) 501, the auditor is required to: |
| (i) | Evaluate management's instructions and procedures for recording and controlling the results of the entity's physical inventory counting; |
| (ii) | Observe the performance of management's count procedures; |
| (iii) | Inspect the inventory; and |
| (iv) | Perform test counts. |
| The auditor is also required to perform audit procedures over the entity's final inventory records to determine whether they accurately reflect actual inventory count results. (paragraph 4) |
| 17. | The following paragraphs set out the principal procedures which may be carried out by auditors when attending a stocktake, but are not intended to provide a comprehensive list of the audit procedures which the auditor may find it necessary to perform during attendance at stocktaking. |
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