You are the auditor of a company covered under the Companies (Auditor's Report) Order, 2015. Describe the matters you will cover in your report in respect of Inventory.

The Companies (Auditor's report) order 2015 recommends that an auditor should include a statement as under: (i) Inventory Whether physical verification of inventory has been conducted at reasonable intervals by the management? Are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business? If not, the inadequacies in such procedures should be reported. Whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account?