audit - INVENTORY OBSERVATIONS BACKGROUND: The city has 22...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Sheet1 Page 1 INVENTORY OBSERVATIONS BACKGROUND: The city has 22 inventory locations on the perpetual inventory system. The Internal Audit Department intends, for this fiscal year, to observe the taking of inventory at three of these locations. Selecting the three largest of the 22 will enable us to cover 43% of the total dollar value of city inventories. SCOPE: The scope of the audit is limited to the three largest inventories to be selected by the field auditor. The audit period is for last fiscal year. The cut off period is fiscal year end. PLANNING: 1. We will not notify the departments prior to our observations, because they are required to take inventory at year end regardless of whether or not we observe them. 2. Obtain the computer listing of the perpetual inventory dated the last day of the month. These are special runs prepared by the Data Center for use by us and the departmental count teams. 3. Scan and select the three inventories that will be observed. 4.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/16/2011 for the course AUDITING 201 taught by Professor Unknown during the Spring '11 term at Symbiosis International University.

Page1 / 3

audit - INVENTORY OBSERVATIONS BACKGROUND: The city has 22...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online