ASA 501 - Existence and Valuation of Inventory - April 2006
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Introduction
4 The purpose of this Auditing Standard is to establish mandatory requirements and to provide explanatory guidance on obtaining sufficient appropriate audit evidence regarding the existence and valuation of inventory in the financial report.
5 The auditor shall obtain sufficient appropriate audit evidence regarding the existence and valuation of inventory material to the financial report.
6 Definitions, and the method of measurement regarding inventory, are given in Accounting Standard AASB 102: Inventories and are adopted for the purpose of this Auditing Standard. Although the method of measurement given in AASB 102 does not apply to certain types of inventories, the guidance provided by this Auditing Standard may be suitable for the purpose of obtaining sufficient appropriate audit evidence regarding their existence and valuation.