Inventory provisions
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Often percentage indicators of provisions for inventories are applied subject to the aging of the inventories - however no analysis is subsequently performed if the applied percentage indicators are reasonable.
Backtesting if the assumptions are accurate will help avoid material errors in provisions for inventories.
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Next Often percentage indicators of provisions for inventories are applied subject to the aging of the inventories - however no analysis is subsequently performed if the applied percentage indicators are reasonable.
Backtesting if the assumptions are accurate will help avoid material errors in provisions for inventories.