Page 132 - CA Final PARAM Digital Book.
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evaluate whether audit procedures performed in the current period provide evidence relevant to the
opening balances or specific audit procedures are required to be performed to obtain evidence regarding
the opening balances.
In the case of inventories, however, the current period’s audit procedures on the closing inventory balance
provide little audit evidence regarding inventory on hand at the beginning of the period. Therefore,
additional audit procedures may be necessary, and one or more of the following may provide sufficient
appropriate audit evidence:
• Observing a current physical inventory count and reconciling it to the opening inventory quantities.
• Performing audit procedures on the valuation of the opening inventory items.
• Performing audit procedures on gross profit and cut-off.
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