Shelly's Bank has loaned money to Pete's Auto Supply.The loan is collateralized by inventory.The loan also requires a CPA to observe Pete's count of the inventory and trace sampled items to the vendor invoices in order to determine that the value of inventory is not misstated.This service would be

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This engagement involves an independent CPA providing an attestation or assurance service to the lender (Shelly's Bank) regarding the inventory value of the borrower (Pete's Auto Supply). The CPA must observe the inventory counting process and trace sampled items to vendor invoices, providing a level of confidence to the lender that the inventory value is not misstated.

Shelly's Bank Has Loaned Money to Pete's Auto Supply