AUD Inventory · Updated November 2026
What Does the Auditor Actually Do at the Inventory Count?
Management counts the inventory. The auditor observes, tests, and obtains evidence.
Auditor responsibilities
The auditor can observe management's count procedures, perform test counts, inspect condition, evaluate instructions, and test cutoff.
Management owns the count
Management remains responsible for inventory records and the physical count.
Different date
If the count occurs before or after year-end, additional procedures can roll quantities forward or backward.
Unable to attend
If attendance is impracticable, alternative procedures may sometimes provide sufficient evidence. If not, a scope limitation can result.
The takeaway
Observation supports existence and condition, but other procedures address records, valuation, rights, and cutoff.
Related Summit guides
FAQ
Does the auditor count every item?
No.
Can the count occur on another date?
Yes, with appropriate additional procedures.
Could inability to obtain evidence affect the opinion?
Yes.