J&K Fitness Supply Company: Auditing Inventory

Abstract

This case provides auditing students with an opportunity to perform substantive tests of inventory using realistic-looking source documents. The learning objectives are to help students understand: (1) the procedures auditors perform in order to test inventory; (2) the source documents used in auditing inventory; and (3) the types of misstatements that might occur in inventory. Student feedback indicates the case is successful in meeting all three learning objectives.

Keywords:

• Active learning
• substantive tests
• inventory