Auditing

auditor should attend physical stock taking only if inventory is material

auditor may not attend physical verification of stock by management, if he does not find it Appropriate to rely on it

if inventory is material, even when the auditor is not placing reliance on the physical Verification by the management, he should attend it

the primary objective of an auditor’s observation of an entity’s observation of an entity’s Stock take is to obtain direct knowledge that the stock and has been property counted