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John Selwood audit clinic

The focus is on audit evidence in this set of questions and answers.

The focus is on audit evidence in this set of questions and answers. 

I am finalising an audit of a new audit client who holds very slow-moving stock. Many of the stock lines would take more than 10 years to sell at current rates and the stock is of such a nature that obsolescence is a real risk. Management are very confident that net realisable value (NRV) is greater than cost, but there are so few sales that there is little evidence to support this assertion. I am particularly worried about getting this right as the company is currently being sold. What should I do?


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