4 inventory challenges during a manufacturing external audit — and how to address them

Manufacturers often face unique challenges during their financial statement audit. Most of these issues focus on inventory and its related accounting procedures. But an experienced independent auditor that understands the manufacturing industry can serve companies navigating those challenges.

As manufacturers prepare for an upcoming audit, they should be mindful of four issues that can add complexity.

Auditors are required to observe manufacturer inventory counts. They analyze and test those…