Your firm audits Clean Paints Ltd. and you are planning the audit of stock and work
in progress for the year ended 31 December 2000. Clean Paints Ltd. determines the
value of stock in its financial statements by the year-end stocktake. There is no
perpetual Stock Inventory System though stock is counted quarterly for the purposes
of management accounting.
Stock and work in progress is held at the warehouse which is next to the company’s
factory.
Required:
a) State the areas that you will expect the client’s stocktaking instructions to cover.
(12 marks)
b) Describe the work you will perform and the matters you will record at the
stocktake attendance. (8 marks)