Inventory Count

Observation Test
An observation test involves physical and visual verification by inspection of financial statement items or activities. The external auditor observes and evaluates how company employees conduct various accounting-related tasks such as documenting the existence and valuation of assets, safeguarding assets, approving expense accounts, and counting inventory.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.