AN INDEPENDENT ACCOUNTANT'S EXAMINATION OF NUCLEAR MATERIAL INVENTORIES

The paper contains a discussion of the functions and re- sponsibilities of an independent certified public accountant in his examination of inventories and is oriented specifically to- ward special nuclear materials. It outlines some of the general- ly accepted auditing standards as approved and adopted by the membership of the American Institute of Certified Public Account- ants which are particularly significant in relation to this sub- ject. Consideration is given to the independent auditor's respon- sibility for the evaluation of the system of internal control at a facility processing special nuclear materials and outlines some of the aspects of such a control system and the audit steps which the auditor would perform to satisfy himself as to the adequacy of the system. Material is presented with respect to the proce- dures and related audit steps for key internal control points. The paper also specifically deals with physical inventories of nuclear materials and the independent auditor's work in test- ing these inventories. This section of the paper discusses such matters as the use of statistical sampling techniques and the use of independent technically-trained experts in connection with the audit.