Inventory & Costing: Auditors examine methods and the importance of proper Inventory Valuation
Inventory is often one of the most significant assets on a company’s balance sheet, therefore is one of the most critical areas to audit. Inventory costing determines how the cost of goods sold (COGS) and ending inventory is calculated. The choice of inventory costing method—whether First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or Weighted Average Cost—can…
