aue202-_inventory_audit[1] - from physical inventory to...

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Substantive Procedures during an INVENTORY COUNT During the inventory count . Prior to the inventory count . At the conclusion of the count . Confirm all locations at which the client holds inventory Perform administritive planning – organizing audit staff, etc. Obtain and review a copy of the written instructions given to the clients’ count teams Liaise with the client about dates and times for the count Find out if there is any inventory that should not be counted Brief the audit staff on their responsibilities Observe inventory taking procedures to ensure that the client’s written instructions are adhered to Walk through the store and identify slow moving or damaged goods, and confirm they have been noted as such Conduct test counts on the inventory, making sure all categories and sections are tested Resolve discrepancies in test counts before conclusion of the count by recounting with client staff and making amendments to inventory sheets - from inventory sheets to physical inventory (existence)
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Unformatted text preview: - from physical inventory to inventory sheets (completeness) Test the numerical sequence of inventory counts sheets, both before and at the conclusion of the count Confirm, by enquiry of inventory counters, and by inspection of inventory count sheets, that items that should not have been counted, are in fact excluded on the sheets Inspect the inventory sheets to confirm that:- blank spaces have been struck out- alterations/corrections have been signed- inventory sheets have been signed by the counters responsible Create audit records in respect of the inventory count attendance by:- taking copies of all inventory sheets- recording observations as to the count procedures- recording results of all test counts performed by the audit team- recording any damaged or slow moving inventory identified Record cut-off numbers for all documents used in the inventory and production cycle Compile a list of goods received notes which have not been matched to supplier invoices...
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