Inventory observations are a rite of passage for audit staff and a critical component of many audit engagements. This course provides a hands-on approach to auditing inventory, covering key audit assertions, common risks, and potential threats to inventory balances. Participants will explore essential substantive audit procedures and gain practical experience through a simulated inventory observation. Attendees will practice counting individually significant items, performing floor-to-sheet and sheet-to-floor procedures, and documenting their work - ensuring they leave with the confidence to execute inventory counts effectively in real-world audits. Agenda includes Background, Assertions, Risks & Threats, Substantive Procedures