ACCA · Question 08 · Audit evidence
CASE 2: GREENYIELD AGRI CO-OP
GreenYield Agri Co-op is a large agricultural cooperative specializing in organic crop production and livestock. You are the audit senior. The year-end is 31 December 2025. GreenYield uses an independent agronomist to value its biological assets. During the year, a new computerized inventory system was implemented. The audit team is planning the inventory count attendance and evaluating the reliability of the agronomist's report.
Given the implementation of the new computerized inventory system during the year, how should the auditor approach the system-generated inventory reports used for audit evidence?
Answer options:
Assume the reports are accurate because computer systems are less prone to error than manual systems.
Test the accuracy and completeness of the system-generated reports before relying on them.
Only rely on the reports if the IT manager provides a written representation of their accuracy.
Ignore the system reports and manually recalculate all inventory movements for the year.
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