Your firm is the auditor of Trent Textiles Ltd, and you are planning your
audit work on the stock-take, which will be carried out at the firm‟s yearend of 31 May 19X3.
Trent Textiles manufactures knitted garments, including pullovers. The
production process comprises:
(a) Knitting the individual components (e.g body and arms);
(b) Sewing the components together to form the finished garment;
(c) Cleaning, finishing, pressing and folding the garments;
(d) Packing the garments, ready for dispatch to the customer.
Trent Textiles does not have a perpetual inventory system, so the value of
the stock in the accounts is found from the stock-take at the year-end. For
management purposes, Trent Textiles carries out a full stock-take every
Your permanent file of the company confirms that it has a single factory
and no internal audit department.
You have been asked by the manager in charge of the audit to suggest the
work you will perform at the stages listed below.
(a) State the work you will carry out prior to the commencement of the
(b) State the procedures you will check during the stock-take to ensure
the company‟s staff have accurately recorded the stock.
(c) State the work you will carry out and the matters you will record at the