There are no prerequisites.

Course Description

The audit of inventory can be one of the most complex and time-consuming parts of an audit. A client's inventory asset may be comprised of thousands of different items, possibly stored in multiple locations, with potentially low-quality inventory records and associated valuations that are difficult to prove. How to Audit Inventory describes the characteristics of inventory from an auditing perspective and explains the activities required to audit this key asset. Particular attention is given to inventory counts and inventory valuation. 


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Dec 21, 2017
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of  this course, participants will be able to:

Chapter 1

  • Recall the classifications used for inventory.
  • Note the characteristics of the different types of inventory fraud.
  • Describe the situations in which inventory errors can lead to material misstatements.
  • Describe the substantive procedures used by an auditor to audit inventory.
  • Recognize the items to be reviewed as part of an inventory test count.
  • Note the actions to be taken when testing inventory costs.
  • Describe compilation testing.

Chapter 2

  • Cite the circumstances under which a physical inventory count can be avoided.

Chapter 3

  • Recall the details of the lower of cost or market rule.

Chapter 4

  • Note the advantages of the various inventory costing methods.

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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