Inventory plays an important role in inventory and warehousing cycle which have a significant amount in the financial report, which can affect the income statement reporting. Hence, the value of the inventories are actually have to be straightly reflected the income statement. To answer the needs of the adequate inventory assessment, audit of inventory and warehousing cycle need to be implemented to support the reliable presentation of the company’s financial statement. Therefore, in auditing the inventory and warehousing cycle in PT. Karya Semangat Mandiri which runs a business in an agriculture sector, it consists of several tests, such as compliance test and substantive test to prove the existence and valuation assertion in the company. This research was being conducted in qualitative descriptive method using purposive sampling. The results show that the existence and valuation of biological asset in PT. Karya Semangat Mandiri are appropriate. The existence can be proved through the stock - taking activity which was done in the last two months consecutively, while the valuation was through the walkthrough by checking the documents.