L16 notes_Part_4 - g. dress down h. lock down all inventory...

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© W.R. Knechel Physical Inventory Observation Identify need for a Specialist Review client’s procedures and discuss -Locations, personnel, and timing Identify locations & stop flow of goods Discuss procedures with audit staff Make test counts Copy Inventory Sheets immediately
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© W.R. Knechel Physical Examination of Inventory Physical Examination: Controls and Procedures (merchandiser) a. double cutoff tags b. prenumbered tags c. roped off areas d. verify contents of boxes on a test basis e. note any rust, damage, or dust f. learn about products client sells
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Unformatted text preview: g. dress down h. lock down all inventory to avoid the "shell game" , consignment inventory, ship + hold i. tour warehouse to insure all items were tagged j. pick up last receiving and shipping documents k. inquire whether title has passed for goods on dock or in warehouse l. compare high dollar items to previous years and inventory master file for reasonableness m. obtain cutoff documents 6. Record test counts - Why? a. precludes client from changing numbers b. evidence of physical examination c. discuss the unique aspects of examining diamonds, gold mine, and real estate...
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L16 notes_Part_4 - g. dress down h. lock down all inventory...

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