T Ltd. has appointed NFO & Co., Chartered Accountants, as statutory auditors. Since inventory is a material component of the financial…

Matters that CA F should consider when planning attendance at physical inventory counting are: (i) Nature of inventory. (ii) Stages of completion of work in progress. (iii) The risks of material misstatement related to inventory. (iv) The nature of the internal control related to inventory. (v) Whether adequate procedures are expected to be established and proper instructions issued for physical inventory counting. (vi) The timing of physical inventory counting. (vii) Whether the entity maintains a perpetual inventory system. (viii) The locations at which inventory is held, including the materiality of the inventory and the risks of material misstatement at different locations, in deciding at which locations attendance is appropriate (ix) Whether the assistance of an auditor's expert is needed to obtain sufficient appropriate audit evidence.