- *population, provided that *compliance testing suggests the satisfactory operation of relevant *internal controls. Physical inventory tests may range from counts performed annually to periodic (or *continuous) verifications of the accuracy of *perpetual inventory data, or a combination of the two. Obtaining evidence of the accuracy of inventory balances stated in financial statements has been of immense importance to auditors since the *great salad oil swindle of the early 1960s. 2. Audit procedures devised to obtain evidence of the existence, condition, and physical quantities of *property, plant, and equipment.
Auditor's dictionary. 2014.
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physical verification — A procedure auditors use to ensure that inventory recorded in the book is correct by actually checking out the physical inventory. Bloomberg Financial Dictionary … Financial and business terms