Inventory sources its closing stock figure directly from the Stock-in-Hand ledger, then composes CY/PY movement as a percentage so a swing stands out without needing a separate calculation. A gross-profit-percentage trend sits alongside it with a written conclusion, not just a number, reading as an SA 520 analytical review: what moved, and whether the movement is explained or needs a follow-up. Per-item price exceptions compare vendor rates across purchases and flag wide spreads for AS 2 cost-measurement review. A quantity-coverage card shows how much of the counted inventory the audit evidence gathered actually covers, so the auditor can see the gap rather than assume full coverage. Obsolescence, expiry, and cut-off risk are flagged where the data supports it, and third-party-stock prompts surface when inventory may be held on someone else's premises or someone else's stock may be held on the auditee's. Where there is genuinely no inventory to test, the working paper states a Type B nil plainly, rather than rendering an empty grid that looks like missing work.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
Closing stock is read directly from the Stock-in-Hand ledger. CY and PY balances are compared and expressed as a movement percentage, so an unusual swing is visible without a separate calculation.
The gross-profit percentage is trended CY against PY and comes with a written conclusion under SA 520 analytical review framing, describing what moved and whether it holds up, not just the percentage itself.
Vendor rates are compared per item and wide spreads are flagged for AS 2 cost-measurement review. A quantity-coverage card shows how much of the counted inventory the gathered evidence covers. Obsolescence, expiry, and cut-off risk are flagged, with third-party-stock prompts where relevant, and a Type B nil is stated plainly when there's nothing to test.
Closing stock comes straight from the Stock-in-Hand ledger balance, never re-derived from a separate stock sheet, with CY/PY movement composed as a percentage.
The GP% trend is presented with a written read, not a bare figure, describing whether the movement is explained or flags a follow-up, under SA 520 analytical review.
Vendor rates are compared item by item and wide spreads flagged for AS 2 review. A quantity-coverage card quantifies how much of the counted inventory the gathered audit evidence actually covers.
Obsolescence, expiry, and cut-off risk are flagged where the data supports it, third-party-stock holding is prompted for, and a genuinely nil inventory position is stated as a Type B nil rather than an empty grid.
