[Anonymous]

So, the newbie’s go to the stock counts and they do prepare their samples of the inventory, checking for completeness and for existence and probably put it on an excel sheet with the differences noted and maybe with the value of the differences.

Now, What happenes next ? i was only a newbie when i did that and never audited Inventory and left public accounting …

i do remember the senior on the job doing a v-lookup on the samples we got and to compare it with a list of inventory – was that list the final list ? does he compare it with the final one to see of the differences were reconciled? What happens ?

I would really appreciate a simple explanation …

Thanks guys …

[Anonymous]

You compare the test counts to the counts performed by the Company employees.

If there are differences in a test count you want to:

1. make sure there is a 2nd count performed and any difference is corrected in the Company's inventory report.

2. consider expanding the scope of your test counts.

[Author]

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