In an initial audit engagement, in the case of inventories, the current period's audit procedures on the closing inventory balance provide little…

In an initial audit engagement, in the case of inventories, the current period's audit procedures on the closing inventory balance provide little audit evidence regarding inventory on hand at the beginning of the period. Therefore, additional audit procedures may be necessary, and one or more of the following may provide sufficient appropriate audit evidence: Observing a current physical inventory count and reconciling it to the opening inventory quantities.Performing audit procedures on the valuation of the opening inventory items.Performing audit procedures on gross profit and cut-off.